AT&T has confirmed to Business Insider that its AdWorks ad sales unit is undergoing changes that involve a "reduction of some positions."
We heard from multiple sources that AT&T is in the process of cutting jobs at AdWorks, the cross-platform advertising network AT&T had hoped would catch fire with clients who wanted to use AT&T's data to target users on mobile, TV and other devices.
The company told us:
We are in early stages of reassessing parts of our AdWorks business strategy. That may involve reassigning and reduction of some positions. But it’s too soon to provide details. We remain committed to providing advertisers valuable ways to connect with consumers.
Adworks was an ambitious project for AT&T. The company had hoped to put together a network of mobile publishers — apps and so on — that it could offer advertisers, coupled with the company's own anonymized data. In May, Adworks offered a program called Blueprint that purported to offer targeted ad buys across a range of media, mobile, TV and online.
There were also rumors that it might buy a mobile ad company like Jumptap or Velti, to get the scale it wanted. Those rumors came to nothing, however.
More recently, there have been job cuts at Adworks' offices in Los Angeles, New York and Chicago, our sources say.
We understand that the changes at AdWorks are part of a shift in strategy for AT&T, but that the company will stay in the ad sales business in terms of its U-verse TV offering and some of its mobile properties.
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