The iconic smartphone advertising company is letting about 100 people go out of around 1,000 total employees.
InMobi, a mobile ad company that has been seen as a considerable Indian success story that has been drawing leading talent and investors throughout the tech industry has now revealed that it is laying off a massive ten percent of its staff.
The cutbacks are going to affect approximately 100 people out of the total staff of 1,000 company employees.
This is the most recent indicator that the mobile ad network is finding it increasingly challenging to be able to survive the staggering competition from giants such as Facebook and Google. The startup has been in direct competition with those massive players when it comes to the data-driven mobile marketing arena. InMobi had been maintaining great hopes for their products, but the startup has not been meeting its targets when it comes to revenue, moreover the burn rates don’t appear to be decreasing, say many media reports.
The mobile ad network has received venture funding from exceptionally powerful top investors.
Among those investors are Sherpalo Ventures from Caulfield & Byers and Ram Shiram, and Softbank from Japan. In 2011, it was the recipient of $200 million from SoftBank, bringing it to the point of being a startup that had more than $1 billion as its market cap.
According to an anonymous source who has knowledge of the latest developments at InMobi, “Investors have told them (InMobi) to reduce costs,” adding that “The layoffs have happened from the senior executive level to the programmer ranks.”
A spokesperson was reported to have said in an email query response that employees have left for a range of different purposes, such as starting their own ventures or moving forward with various career aspirations. That individual explained about the mobile ad network that “We also let go of a few people for performance reasons each year.” That person stated that the startup has a strategy in place for 2016 for driving growth, which included the hiring of 40 additional employees and that it had issued offers for more than 48 management and engineering grads.
Tewari stated that “I thought if I could do something from here that can be successful, maybe I’ll have a small role in creating great companies out of India that can compete with the iconic companies in Silicon Valley.”