Cardlytics Inc., an Atlanta-based marketing software firm, has cut nearly one-third of its workforce as part of a major cost-savings effort.
Cardlytics said Thursday it laid off 120 workers, including contractors, reducing its workforce by 30%. A company spokesperson said Friday about 90 are full-time employees.
Cardlytics’ software allows retailers to create targeted ads on banking websites, based on a consumer’s purchase history. The company is headquartered at Ponce City Market and was an early office tenant at the project along the Atlanta Beltline.
It’s not clear how many Atlanta employees might be affected. “We don’t publicly share employee numbers by market,” the company spokesperson said Friday.
In a statement, CEO Amit Gupta called the layoffs a difficult decision but necessary to protect the stability of the business.
In the second quarter, Cardlytics reported revenue of $63 million, down 9% from the same period in 2024. It posted a net loss of more than $9 million, more than double the net loss reported during the same quarter in 2024.
“We believe this reduction will enable us to focus on the areas of our business that matter most to our partners and advertisers, and invest in our agenda for long-term growth,” Gupta, who was appointed CEO in August 2024, said in the statement.
Cardlytics said it will incur about $2.3 million in severance and other expenses related to the workforce reduction. The company said it hopes to save at least $26 million through the cuts and other actions tied to its third-party spending, real estate and operations.
In the United States, Cardlytics works with Chase Bank, Bank of America, Wells Fargo, US Bank, Truist Bank, PNC Bank, Regions Bank, Venmo, and other banks and processors, according to its website.
During an August earnings call, Gupta said the company was working through a “notable change” with its largest financial institution partner, although he did not identify it.
“This partner, who built their program with our offers over the last several years, has recently decided to restrict a large amount of content from running on their channels starting July 1,” Gupta said during the call.
“This change is posing significant limitations for our business,” he said.
It’s not immediately clear what impact that had on Thursday’s announcement.
“The reduction was part of an effort to realign resources with the most business-critical priorities as we continue to optimize our cost structure,” the company spokesperson reiterated Friday.
Cardlytics was founded in 2008 and went public in 2018. The company has conducted prior layoffs, including in 2016, when it cut almost 15% of its workforce.
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