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Plex hit with layoffs as ad-supported streaming service fails to deliver profits for media server company

It’s been a tough week at Plex where the company has decided to let go of 20% of its workforce. Plex CEO Keith Valory blamed an unpredictable advertising market for the need to downsize.

News of the layoffs at Plex first appeared on social media on Monday, and The Verge later obtained a memo from the CEO announcing the move via Slack.

According to the report, layoffs at Plex eliminated 37 jobs across the company as it tries to “significantly reduce […] personnel expenses” and become profitable within 18 months.

As part of the shift, Plex plans to reprioritize its product roadmap and restructure under four main product areas and shared services, The Verge reports.

Since 2019, Plex has included a free, ad-supported streaming service inside the popular media server software. The Verge reports that it’s this strategy that has proved challenging for Plex:

Plex’s ad business has been “significantly impacted” by the downturn in global advertising markets, Valory said, and “unfortunately, we cannot know how long ad markets and pricing will continue to be depressed and volatile.”

Plex media server software is available for free on virtually every platform. Plex Pass is an optional $4.99/month premium tier that unlocks a collection of power user features. Plex Pass is also available for $39.99/year or $119.99 for a lifetime plan.

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Avatar for Zac Hall Zac Hall

Zac covers Apple news, hosts the 9to5Mac Happy Hour podcast, and created SpaceExplored.com.