In April 2020, the Santa Monica-based digital advertising firm GumGum laid off 25% of its workforce, affecting approximately 90 employees out of a total of around 360. The layoffs impacted both its core contextual advertising business and its sports analytics division. CEO Phil Schraeder cited the severe economic impact of the COVID-19 pandemic, which caused a significant drop in digital ad revenue across the industry. Despite having secured $22 million in Series D funding just two months prior in February, the company stated the cuts were a necessary adjustment to weather the volatile market and ensure long-term stability. This move reflected broader challenges in the adtech sector, where many firms were forced to reforecast revenues downward due to the crisis.
