The retargeting company NextRoll, which recently rebranded from AdRoll, laid off 30% of its 700 global staff at the beginning of April due to the economic effects of the coronavirus pandemic.
The remaining employees are taking 20% pay cuts, AdExchanger confirmed. The executive team are cutting their salaries by a greater, but unspecified, percentage.
“We are in the midst of the most challenging period the world has experienced in our lifetime,” said NextRoll Inc. CEO, Toby Gabriner. “It’s impossible to know how long this global pandemic will last, but it’s clear that NextRoll has entered uncharted territory.”
NextRoll made the layoffs “to ensure that we continue to have a strong balance sheet and ability to thrive on the other side of this event for our employees and our customers,” Gabriner said.
NextRoll’s customer niche exposed it to the economic impacts of the COVID-19 pandemic.
Focused on retargeting and marketing services, the company serves many small to medium-sized businesses, a category that’s been heavily hit by the coronavirus. Its client base also skews toward ecommerce, including apparel retailers like Untuckit, Bonobos and TeePublic – and clothing has taken a dive as people stay at home.
NextRoll made its US employees’ last day April 1, making them eligible for health insurance through the end of the month. NextRoll will cover an additional month of COBRA health insurance in May. “Our primary focus right now is to ensure that customers, employees and their families stay safe and healthy,” Gabriner said.
US employees were paid through April 3, and European employees through April 24. They all received severance packages based on tenure.
With NextRoll’s finances calibrated to the new reality, Gabriner said the company is now focusing on helping its customers stay afloat too.
“We are re-doubling our focus on our mission to level the playing field for our customers, who now more than ever need assistance in driving revenue and, at minimum, sustaining their business,” Gabriner said.
NextRoll is part of a growing list of ad tech, agencies and digital media companies that have reduced staff and salaries due to the economic effects of the coronavirus pandemic. A comprehensive list of what companies have done in the wake of the pandemic can be found here.