SAN MATEO, CALIFORNIA: After the failure of Bud Light's partnership with Dylan Mulvaney, a California marketing firm has taken a drastic step by firing more than a dozen employees. This comes shortly after senior executives openly celebrated a luxurious trip to Cannes, France.
The marketing company, Captiv8, headquartered in San Mateo, gained attention for organizing a private jet for top executives and special guests to attend the renowned Cannes-Lions festival in June, per The NY Post.
Who is Krishna Subramanian?
Krishna Subramanian is the CEO and co-founder of Captiv8.
The entrepreneur also co-founded Unanimous Capital, demonstrating a commitment to startup growth. Subramanian's other career roles include serving on the Mobile Marketing Association's Board of Directors and spearheading mobile marketing and advertising technology at Velti.
His impact extends to Mobclix, Yahoo, and BlueLithium, where he co-founded and directed transformative ventures.
Upon their return from Cannes, CEO Subramanian reportedly provided a rundown of their trip during a company-wide Zoom meeting held on July 3.
The presentation purportedly showcased photographs of the excited travelers aboard the lavish private jet, in addition to images of their visits to yachts, pool parties, and villas situated in the southern part of France.
Captiv8 reserved a private charter through a boutique French airline named La Compagnie, known for its 76 fully reclining seats and a unique "bespoke plane experience," as detailed in a press release about the journey.
Captiv8 CEO fires 13 employees after Cannes trip
However, just two days after this lavish display, CEO Subramanian, perceived by some as "tone-deaf," reportedly fired 13 employees. This accounts for approximately 5% of Captiv8's workforce, which comprises over 200 employees, as disclosed by a staff member at the firm.
"They said they were investing in the future of the company and building relationships," one current worker who survived the purge said, adding, "Maybe they could have saved jobs instead of blowing all of this money" in Cannes.
Captiv8 extended invitations to various influencers, including David Dobrik, Josh Richards, and Robyn Delmonte (known as Girl Boss Town). In addition, the company also invited chief marketing officers from several firms that have partnerships with Captiv8.
Passengers on the trip were treated to an array of goodies, including skincare and beauty products, electronics, designer sunglasses, and a denim jacket, along with wine and Champagne. These details were shared through social media posts about the excursion.
Over time, Captiv8 has garnered recognition as an award-winning enterprise by aligning social media influencers with prominent consumer brands. This approach was allegedly employed when Mulvaney posted an Instagram picture on April 1, featuring her holding a can of Bud Light.
Following the layoffs, CEO Subramanian reportedly addressed the remaining staff through another company-wide Zoom meeting, during which he indicated that the agency was actively reviewing budgets and assessing its financial situation, as per information from sources.
"The timing was terrible," said one fired employee who did not want to be identified out of fear of losing their severance package.
"You wouldn’t expect to be laid off after such an extravagant trip. If you get more business in Cannes then you don’t downsize and cut your manpower," added the devastated worker, who has young children.
At present, the recently laid-off employee is grappling with anxiety over the prospect of finding new employment in a job market that is gradually becoming more competitive. "I need to keep my head above the water because no one is hiring right now," the former worker said.
The company, boasting clientele such as McDonald's, Disney, Toyota, Nordstrom, Macy's, and OceanSpray, clarified that the layoffs accounted for "less than 5% of our workforce" and emphasized that they are currently in the process of actively recruiting for various positions.
According to a representative from Captiv8, the decision to let go of employees was a result of routine performance evaluations. "We assess the productivity of our employees with regular cadence and these layoffs were part of a continuous strategy that ensures our continued success," the spokesperson said.
"We want to emphasize that these decisions, which were not made lightly, were driven by a strategic assessment of our team with our business priorities in mind, and not by financial challenges," they added.
The company said the junket was "paid for in tandem with our brand partners and clients, having no impact on the company’s overall bottom line." The spokesperson emphasized that the trip is a "meaningful business development lever for Captiv8."