Primarily impacting the Personal Media teams and potentially other departments, this development comes amidst a slowdown in advertising activities.
SurgeZirc SA’s request for comment from Plex remains unanswered at the time of reporting. Plex offers users a convenient platform to upload, organize, and stream a wide range of content, including videos, audio files, and photos, from their personal servers.
The app enables seamless streaming across mobile devices, smart TVs, and desktops. In recent years, the app has made substantial investments in free, ad-supported streaming (FAST) and live TV services.
However, the FAST market has experienced saturation with the entry of numerous competitors. Moreover, the advertising industry as a whole has faced challenges, making it increasingly difficult for companies to generate sufficient revenue.
According to a Slack message obtained by SurgeZirc SA, sent by Plex CEO Keith Valory, the company has been significantly affected by the advertising slowdown.Valory expressed uncertainty about the duration of the depressed and volatile ad markets and pricing.
Consequently, Plex has taken the step to “reduce personnel expenses” in order to achieve profitability within these constraints. The message revealed that 37 employees would be impacted by the layoffs.
Furthermore, it appears that Plex may have undergone another round of staff reductions earlier this year. Five months ago, a former account executive took to LinkedIn to announce their involvement in the company layoffs. As of January, Plex had a workforce of 175 employees, with a high revenue.