Video game MCN giant Machinima is laying off 42 of its sales staff, in a move that will make it even more dependent on YouTube for incoming revenue. In a restructuring of its sales division, the company plans to outsource the bulk of its ad sale campaigns (banners and pre-rolls) to YouTube's sales department, while the remaining sales team focus on more custom ad deals. Jay Sampson, Machinima's executive VP of global sales and advertiser operations, is also leaving the company, according to sources.
Via a statement, Machinima confirmed that the layoffs are:
an effort to create greater focus internally on selling creative ad solutions and branded entertainment, while better leveraging its longstanding partnership with YouTube to drive media sales. In connection with this, the company is releasing 42 employees.
Today’s staff cuts come less than four months after the company down-sized 10% of its work force. Rumors abound that Machinima is very close to realizing a $10-$15 million round of funding from Warner Brothers, with Warner retaining the option to acquire Machinima in the future. The company is also still looking for the next successor to founding CEO Allen DeBevoise, who is taking a step back from over-seeing daily operations.