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.
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