Appen to Close North American Offices and Implement Cost-Cutting Measures

Appen, the Australian data-annotation provider, has announced plans to close its offices in Bellevue and Toronto as part of its cost reduction strategy. The decision comes as a response to the termination of its contract with Alphabet Inc.'s Google. Appen aims to reduce annualized costs by $13.5 million, with savings primarily related to the completion of Google's projects, which will cease by March 19.

Considering that approximately 30% of its 2023 revenue came from Google, the company is taking proactive measures to mitigate the impact of this loss. In addition to closing their North American offices, Appen expects to achieve 80% of the planned cost savings by March, with the remaining savings implemented by June. The full benefits of these measures are anticipated to be reflected in the company's fiscal 2025 accounts.

Appen was recently under the leadership of former CEO Armughan Ahmad, who was based in Toronto. However, Ahmad left Appen last week after just 14 months in charge. Despite these changes, Appen remains focused on adapting to the evolving landscape and ensuring long-term sustainability.