MediaMind, a developer of systems for digital advertising campaign management, has downsized its 270-strong workforce in Israel,
laying off 10 sales people and relocating several dozens to its New York headquarters.
Sources with knowledge of the company said that it wanted to be closer to its clients, most of whom are located in New York.
Eighteen months ago, MediaMind was acquired by Digital Generation (DG) for a whopping $500 million.
Before the acquisition, DG had no sales and marketing department. MediaMind's marketing unit undertook the management of DG's sales and marketing activity, and now DG international wants all sales activity concentrated in New York, in proximity to its clients.
In recent months, founders Gal Trifon and Ofer Zadikario left the company, and CFO Sarit FIron left to join US-Israeli startup venture Kenshoo.
Another source with knowledge of the company said, "Selling the company was beneficial mainly for the investors, most of all Eli Barkat's BRM, and founders like Jonathan Kolber.
"Now the company is experiencing what every entrepreneur selling out to Americans experiences: The Israeli part of the company is made irrelevant in favor of concentrated management in the US.
"The sad thing about it is that MediaMind was on the road to success – it held a successful IPO and could have grown and made acquisitions similarly to Check Point or Mellanox."
This report was originally published in Hebrew