By Stuart Condie
SYDNEY–Australian data-annotation provider Appen will close two North American offices as part of a round of swingeing cost cuts in response to the loss of its contract with Alphabet Inc.’s Google.
Appen on Monday said that it aimed to reduce annualized costs by $13.5 million. The savings are related to the delivery of Google’s projects, which will cease by March 19.
The ASX-related company, which generated about 30% of its 2023 revenue from Google, said it will close its offices in Bellevue and Toronto. Former chief executive Armughan Ahmad was based in Toronto until leaving Appen last week after just 14 months in charge.
Appen expects to complete 80% of the planned cost savings by March, with the remainder in place by June. The first full-year benefit will show in its fiscal 2025 accounts.
Write to Stuart Condie at [email protected]
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