The Trade Desk Plans 15% Job Cuts

The Trade Desk announced on 9 September 2026 plans to cut its workforce by up to 15% as part of an organizational restructuring scheduled for the current quarter. Restructuring charges are projected to range from $39 million to $51 million, partially offset by a $4 million to $5 million reduction in stock-based compensation. Shares fell 4.4% in the Friday trading session following the news, extending a 62% year-to-date decline that left the company valued at a market capitalization of $6.8 billion.

The operational shift comes after second-quarter 2026 results missed market expectations. Second-quarter revenue rose 3% year-over-year to $715 million, while earnings dropped to $0.14 per share from $0.18 per share a year earlier. For the third quarter, the company projected revenue of approximately $650 million, representing a 12% annual decrease. For the full year 2025, revenue grew 18% to about $3 billion, while customer retention has remained above 95% over the past decade.

Despite slowing top-line growth, operating cash flow for the six months ended 30 June 2026 reached $545.4 million, an increase of 19.5% from the prior year. The company finished the period with $1.1 billion in cash against short-term debt of $80.9 million. Earlier in the year, CEO Jeff Green purchased 6 million shares for about $148 million. The company is continuing to invest in Kokai, which received the Kokai Zuma update in August 2026 showing an average 32% cost per acquisition improvement across 62 campaigns, as well as its UID2 open-source identity framework.

Wall Street sentiment remains cautious on the digital advertising company. Among 38 analysts covering the stock, three rate it a Strong Buy, one a Moderate Buy, 26 a Hold, one a Moderate Sell, and seven a Strong Sell. The average price target of $15.05 implies an upside of 4.3% from current trading levels.