The Trade Desk cuts 15% of workforce amid shift to 'smaller pod' structure

The Trade Desk has announced a significant downsizing of its workforce, laying off 15% of its employees in a move to restructure the adtech company for greater focus and agility. In a note to staff released late Thursday and published on the company's news site, The Current, CEO Jeff Green described the cuts as part of an effort to transition the company to smaller, more nimble teams. The layoffs are expected to affect more than 500 staffers, based on a February financial filing that listed 3,843 full-time employees as of December 31, 2025.

The restructuring comes amid a challenging period for The Trade Desk, which recently reported disappointing quarterly results. Revenue in the most recent quarter grew just 3% year-on-year, falling short of Wall Street’s expectations and signaling a slowdown for a company long seen as a leader in the adtech sector. Following the results, Green acknowledged that The Trade Desk “did not meet the standard we set for ourselves” and outlined plans to strengthen execution, upgrade the company’s technology platform, and sharpen its strategic focus.

The Trade Desk has declined to comment further on the layoffs.

The company’s stock has been among the S&P 500’s worst performers over the past two years, dropping roughly 70% in the past year alone and nearly 90% from its peak in late 2024. The company has also faced a wave of executive departures, including its chief finance officer, chief revenue officer, chief strategy officer, chief marketing officer, and four board members. While replacements have been appointed for several key roles, including CFO, CMO, and new board members, the turnover has contributed to a period of heightened uncertainty.

The company’s trajectory has also been affected by external pressures, including a high-profile dispute with major customer Publicis Groupe. In March, the French advertising giant advised clients against using The Trade Desk’s platform after an independent audit into its fees. The disagreement was settled in June, according to a joint statement from both firms.

Industry watchers saw indications that layoffs could be coming. On Thursday, prior to the layoff announcement, analysts at Evercore ISI cited investor relations head Chris Roth as saying that The Trade Desk had “never significantly pared back its cost structure” and that there were “significant opportunities to address.”

Despite the turmoil, Green insisted in his statement that The Trade Desk remained in strong financial health, with approximately $1.5 billion in cash and no debt. He said the changes are intended to help the company move “with greater agility, focus, ownership, and speed.”

Founded in 2016 and once one of independent adtech’s biggest success stories, The Trade Desk has recently encountered stiff competition from Amazon and Google, as well as product adoption challenges. This year, the company has adopted a more combative public stance in response to skepticism from media, Wall Street, and industry peers regarding its strategy.

Compounding its difficulties, last month the Securities and Exchange Commission charged a former senior director with insider trading, while federal prosecutors also accused him of securities fraud, alleging more than $338,000 in illegal profits tied to nonpublic company information.

With steep sales declines expected in the second half of 2026 and after two years of steep share price falls, analysts say staff reductions were widely anticipated as The Trade Desk searches for a way to restore growth momentum and investor confidence.