Machinima, a global video entertainment network for young males, today announced it is laying off 42 people as a result of restructuring in and around its sales organization.
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,” the company says, in a statement.
Machinima (the name being a portmanteau of machine and cinema) has 321 million-plus YouTube subscribers and more than 48 billion views.
The company recently lost several top execs, including COO Nanea Reeves, who left in late January to become president of messaging service textPlus. Since last year, company co-founder Alan Debevoise has been looking for someone to replace him in his role as CEO.
In May 2012, Machinima received a $35 million cash infusion from Google, along with pre-existing investors Redpoint Ventures and MK Capital. In June 2013, Allthingsd.com reported that the company had enlisted bankers from Allen & Co. to secure as much as $70 million in new financing, but a deal never came to fruition.
It has recently been reported that Warner Bros. is considering making an investment in Machinima of $10 million to $15 million — this according to a report by the Wall Street Journal, and more recently, the online publication Re/Code.