Seeking “profitability over growth,” Latino digital media company mitú has laid off about 30% of its staff and set in motion a reorganization plan that includes a change in leadership.
Beatriz Acevedo, president and founding partner of mitú, and CEO Herb Scannell, have stepped down from their management positions. Acevedo will continue to have a seat on the company’s board of directors and remain an advisor.
Mark Suster, managing partner at Upfront Ventures and mitú’s largest investor, says the company will try to place those laid off in other positions, but contends the changes are a necessary response to market conditions.
“We are doing tens of millions in revenue and have grown 450% over the past four years,” he says. “Unfortunately, the market now favors profitability over growth so we’re focused on hitting break-even in 2019 and that required some pragmatic cuts.”
The company has not named an interim CEO.
You can read more details about how mitú will be run in the meantime in Forbes.