AdExchanger reported that Adjust and its parent company, AppLovin, laid off about 12% of their combined staff on Monday.
The layoffs come at a time when many tech firms like Tesla, Netflix, Microsoft and PayPal announced hiring freezes and hiring slowdowns amid recession fears, economic uncertainty and public market volatility.
While it’s not clear which roles were affected by the layoffs, an Adjust spokesperson confirmed it to AdExchanger, calling it a “a difficult and prudent decision.”
“Taking this proactive step – not unusual given the current macroeconomic climate – allows us to optimize our resources so we can continue to focus on innovation and increasing shareholder value,” the spokesperson said.
Mobile app technology company AppLovin acquired mobile measurement company Adjust for approximately $1 billion in February 2021. Operating independently from its parent company, Adjust has 16 offices worldwide and more than 500 employees as of last year.
AppLovin, on the other hand, had 2,000 employees as of the end of 2021 across its core businesses and other acquisitions. The mobile app technology firm acquired Machine Zone, the developer of many top-grossing games such as Game of War: Fire Age and Final Fantasy XV: A New Empire, in May 2020. In October 2021, AppLovin acquired Twitter’s mobile ad platform MoPub for $1.05 billion in cash.