OpenWeb announces streamlining plan including layoffs

Nadav Shoval credit: PR
Nadav Shoval credit: PR

The company will move its head office from Israel to New York, lay off 14 in Israel, and cut hours and salaries.

Israeli media readership engagement management platform OpenWeb (formerly Spot.IM) is implementing a streamlining plan, which includes laying off 14 development staff, out of a workforce of 300, cutting work to four days, which could include salary cuts at the end of the year, and the transfer of its head management offices from Israel to New York.

According to the plan, the work week in Israel for 100 development staff will be reduced to four days. Their salaries will remain unchanged but at the end of the year, employee targets will be examined and those who have not met their targets will have a 20% salary cut imposed, contingent on the number of days per week that they are working. Those satisfied with the shorter work week and lower salary can remain but it is safe to assume that some of the employees hit by the new terms will decide to leave.

As part of the move of the CFO and VP advertising from Israel to NewYork, 14 development staff will lose their jobs, with 14 people hired to replace them in the US. The streamlining plan will help the company prepare for the expected global economic slowdown and ready for a potential IPO in 2023 or 2024. The company declined to respond to the report.

OpenWeb, which raised $150 million last November at a company valuation of $1 billion, is led by cofounder and CEO Nadav Shoval. The company's platform is used by more than 1,000 publishers, including Hearst, Yahoo!, Penske Media Corporation, and News Corp., to gain independence from traditional social media through millions of conversations (talkbacks) across thousands of communities with more than one hundred million monthly users.

Published by Globes, Israel business news - en.globes.co.il - on June 15, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Nadav Shoval credit: PR
Nadav Shoval credit: PR
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