In today's ExchangeWire news digest: Shopify will cut 20% of its headcount and sell its logistics business; PubMatic launches a DSP-less media buying solution; and Meta close Facebook Online Paid Events.
Shopify sheds staff, sells logistics business
Shopify will lay off around 20% of its workforce and sell its logistics unit to Flexport. The moves form part of an effort by the ecommerce software provider to renew its focus on its primary offering and to bolster itself against the impact of AI, according to statements from CEO Tobias Lütke.
The redundancies are the second significant round of job cuts announced by Shopify in the past year, with the firm having laid off 10% of staff last July. After having invested in Flexport’s Series E funding round in February 2022, Shopify will now gain 13% equity interest in the company in exchange for its logistics business.
PubMatic launch DSP-free solution
PubMatic has launched a new supply path optimisation (SPO) solution which cuts out the need for demand-side platforms (DSPs) in CTV and video media buying. Activate enables advertisers to buy video and CTV inventory directly from PubMatic’s programmatic platform.
Described in an official press release as a “single layer of technology that directly connects buyers and sellers of digital media,” Activate has already netted partnerships with firms including dentsu, FuboTV, GroupM, and Havas Media Group.
Meta sunsets Paid Online Events
Meta is shutting down Paid Online Events, the Facebook program that allowed brands and content creators to organise and monetise events. The initiative, which was rolled out in 2020 to help facilitate virtual gatherings during the pandemic, will disappear next month.
Last year, the Facebook-parent company closed its live shopping feature to focus on building its short-form video offering Reels in order to compete with TikTok.
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Fact of the Day
USD $8n (~£6.3bn) – Flexport's valuation in February 2022.
Last week's tech teasers
With Q1 2023 well wrapped up, we focused last week’s quiz on the earnings reports from some of the biggest players in the industry. See how you did below!
- 12% – the amount Uber’s shares rose after it reported 29% YOY growth 💰
- Amazon – attributed its growth to “ongoing machine learning investments” 🤖
- 44¢ – the amount restructuring charges reduced Meta’s earnings per share 📉
- 1.87% – the amount Google’s “search & other” revenue increased 🌱
- Microsoft – saw net income rise 9% to USD$18.3bn 💸
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