Calif. tech company VideoAmp lays off more workers after raising $150M

VideoAmp, an advertising technology company based in Los Angeles, is laying off dozens of workers for the second time in five months.

The 20% layoff round, first reported by Ad Age, will leave 80 people out of work, VideoAmp spokesperson Geanna Diaz told SFGATE on Monday. She also said the company, which makes tools that measure television viewership, laid off 10% of staff, or about 40 people, in September, the same month it announced a fresh $150 million funding round.

Diaz said the new layoffs are part of a restructuring “to focus on the business’ growth priorities and key client needs and services.” VideoAmp will now be left with 320 workers, she said, and “industry standard” severance packages were offered to the laid-off staff.

The layoffs come alongside a C-suite overhaul at the ad tech company, which counts Nielsen, with its long-popular TV ratings service, among its key competitors. Founder Ross McCray stepped down from the CEO role on Thursday, announcing a slew of executive promotions and writing in a letter to staff that it was “time to transition from a founder-led company to a world class company.” 

McCray founded VideoAmp in 2014, and the company has raised over $600 million since, according to Crunchbase. That included a $275 million round in 2021, which valued the company at $1.4 billion, plus the $150 million infusion in September 2023.

The former CEO, in his Thursday letter, touted partnerships with Amazon, Disney, YouTube and Meta and said advertisers have booked billions of dollars of ads through VideoAmp’s technology. Nonetheless, the company joins a slew of other tech companies doubling down on layoffs in the hunt for profitability.

Hear of anything happening at VideoAmp or another tech company? Contact tech reporter Stephen Council securely at [email protected] or on Signal at 628-204-5452.