Plex lays off 20% of its workforce amid advertising slowdown

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By Webdesk

Plex, the free streaming app, has laid off about 20% of its staff, TechCrunch has learned, which will have major implications for Personal Media teams and likely other departments.

Plex did not immediately respond to a request for comment.

The streaming app gives users a single destination to upload and organize content (video, audio and photos) from their own server, while also allowing them to stream via mobile app, smart TV or desktop.

However, in recent years, Plex has invested in free ad-supported streaming (FAST) and live TV offerings. The FAST market has become saturated with many companies entering the space. In addition, the overall advertising industry has taken a hit, making it more difficult for companies to generate sufficient revenue.

According to a Slack message from Plex CEO Keith Valory obtained by The Verge, which was the first to report the layoffs, the company has been “significantly affected” by the delay. “Unfortunately, we have no way of knowing how long advertising markets and prices will remain low and volatile,” Valory wrote.

Similar to moves by other media and software companies, Plex is choosing to “reduce our personnel costs” to “become profitable under these constraints,” Valory said. He added that 37 workers would be affected.

Additionally, it appears that Plex suffered another round of layoffs earlier this year. Five months ago, a former account executive posted on LinkedIn that they were “hit by corporate layoffs.”

In January, the company had 175 employees and sales were in the double digits.

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