Affiliate marketing business Acroud is to lay off around 20 employees as it pivots to a more software-driven business model, in a move it claims will cut outgoings by around €1.2m in 2022.
The decision – which Acroud expects to also boost revenue going forward – will lead to a one-off cost of between €200,000 and €250,000.
Robert Andersson, chief executive of Acroud, said the business had to reduce its headcount following a number of acquisitions.
Acroud acquired Power Media Group in January for €4.8m (£4.0m/5.4m), which allowed it to offer Software as a Service (SaaS) as a new division within the business. Affiliate business TheGamblingCabin in April was then acquired in a deal worth SEK47.3m (£4.1m/€4.7m/$5.6m), in April.
“This is a clear result of our strategy to become more effective and software-based while utilising synergies,” Andersson explained. “After multiple acquisitions, we have taken a big step towards being a more software driven affiliate, and have now identified cost synergies.
“This means that we are able to do more with less people,” he continued. “We expect to see the significant effects on EBITDA levels from this program in 2022 and onwards. A leaner, more agile company will keep a higher pace and will adopt quicker to changes. Our goal is always to keep a firm eye on our costs while accelerating our growth in line with our strategy.”
The announcement comes soon after Acroud’s third quarter earnings, which showed its acquisitions significantly boosted revenue. For the three months to 30 September, revenue was up 171.3% at €6.4m – though on a pro-forma basis, this represented an increase of just 0.3%.