Facebook COO: Facebook marketing firm lays off 37% of employees %%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Facebook Marketing Firm Spruce Media Lays Off 20 People
Business InsiderBy Jim Edwards | Business Insider – 1 hour 50 minutes ago
Facebook marketing management firm Spruce Media laid off about 20 people yesterday, COO Lucy Jacobs confirmed to Business Insider. The company's headcount is now about 35 people.
The move came because Spruce wants to align its business with shifts in the way its clients are marketing and buying ads on Facebook.
Founded in 2009, Spruce had built a large managed services team to walk clients through the Facebook process.
In recent months, however, Spruce experienced more success licensing its self-serve ad management platform to ad agency trading desks, who handle large buys for multiple clients. That software-as-a-service business needs fewer staff to handle a larger volume — thus the headcount reduction at Spruce.
Jacobs tells us that the layoffs were not the result of a revenue dip. Spruce ought to be in rude financial health, as it obtained a $15 million debt financing round in November. The company says it handles $150 million a year in Facebook ads, and has been profitable on an EBITDA basis since 2010.
See yahoo (layoffs involved 20 out of total of 55 headcounts which is roughly 37%).
First GM pulled out and then we hear about COO and insider selling and now Facebook firms laying out employees? (did you also notice how the COO sold shares just before this announcement and just before earnings!!!)
The Facebook COO selling $14 million worth of FB stocks got my attention as did hundreds of millions of shares sold by insiders. But before this what had really got my attention was GM pulling its adds out of Facebook.
Now we have Facebook marketing firm laying out employees.
And of course the timing of the COO selling shares, only days before the earnings was even more attention grabbing than the shares themselves.
What the heck is going on with Facebook. Is it all empty promises? Why are all those intimately associated with Facebook, be it insiders and COO or companies such as GM or Spruce Media, either selling shares by hundreds of million shares or laying off employees and jumping ship by completely leaving their association with Facebook behind.
I am not trying to bash this stock as right now I am not short or long, but seriously what is going on. Could FB prove to be yet another dotcom. Is that may be the real reason why its ipo was one of the biggest failures and why the insiders are selling and bailing in a hurry.
Could we in the future wonder why some of us did not see what is coming when FB is delisted.
And Peter Thiel dumped his FB stock at $19-$20 a share. He knows FB and tech in and out. If he is dumping there, peeps are crazy to be buying here. Esp since nothing has changed. FB growth has flattened out and no growth in site, and competition is raging, not too mention the move to mobile is intensifying, and there just is not the real estate there for ads like the desktop.