Why Microsoft Advertising Is Closing the Xandr DSP and Cutting Jobs
In a notable shift for the ad tech industry, Microsoft Advertising is shutting down the Xandr demand-side platform (DSP) by 2025. The move, officially confirmed in May 2025, brings an end to one of the last remaining independent programmatic platforms, marking a significant change in Microsoft’s approach to advertising. The decision also comes with confirmed xandr layoffs, particularly within engineering and account services.
This article explains what’s changing, what Xandr was originally built for, and how Microsoft plans to evolve in the advertising space post-DSP.
What Is Xandr and Why It Mattered
Originally founded as AppNexus, Xandr was a programmatic advertising platform designed to help marketers buy digital ad space across the open web. After being acquired by AT&T in 2018, it became a cornerstone of the company’s digital media strategy alongside WarnerMedia.
In 2021, Microsoft acquired Xandr from AT&T. Since then, the platform has operated as a part of Microsoft Advertising. The Xandr DSP allowed advertisers to use real-time bidding and data-driven targeting, competing with the likes of Google’s DV360 and The Trade Desk.
Xandr served media buyers looking for flexibility, scale, and access to premium inventory. But its future became unclear after Microsoft began investing more in its native, search, and AI-powered ad tools.
Why Is Microsoft Shutting Down the Xandr DSP?
According to reports from Digiday and AdExchanger, Microsoft is winding down the DSP product because it no longer aligns with their long-term ad strategy. A Microsoft spokesperson told Digiday, “We are aligning our advertising investments to focus on high-growth areas like search, retail media, and connected TV.”
This decision is not just about technology. It also impacts the people behind the platform. Microsoft has confirmed xandr layoffs across several divisions, including product, engineering, and client services.
Xandr DSP Shutdown Timeline and What’s Next
- Microsoft will phase out the DSP by the end of 2025.
- Existing Xandr clients will be supported during the transition period.
- Xandr’s remaining tools, such as its data marketplace and supply-side connections, may be partially retained or re-integrated.
- Microsoft will focus on AI advertising tools, first-party data solutions, and its native search ecosystem.
The xandr dsp shutdown: microsoft advertising announces closure and layoffs will likely result in talent migration to other ad tech companies, and perhaps consolidation among smaller DSPs.
What It Means for Advertisers and the Ad Tech Industry
The closure highlights how the industry is shifting toward AI, privacy-first targeting, and owned channels. Advertisers who once relied on Xandr’s programmatic capabilities will need to look for new DSPs or adjust their media mix.
It also reduces competition in the DSP space. With fewer independent options, Google and The Trade Desk may gain even more influence over how digital ad dollars are spent.
For job seekers, the xandr layoffs may push skilled professionals into the growing sectors of AI-driven marketing, retail media, and data analytics.
Final Thoughts
The xandr dsp shutdown: microsoft advertising announces closure and layoffs marks the end of a notable chapter in programmatic advertising. Xandr once stood as a leading alternative to big tech advertising platforms. Its closure underlines Microsoft’s evolving priorities: AI, search, and owned ecosystems.
While the transition brings challenges for advertisers and employees alike, it also signals where the future of digital advertising is heading — toward tools powered by machine learning, privacy compliance, and high-performing retail channels.
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