Kate Johnson

Portland marketing technology company Act-On Software replaced its chief executive on Thursday and said it will close two sites in California, reducing its work force by about 15 percent.

The changes will make Act-On cash-flow positive, according to new CEO Kate Johnson, and free up money to hire more software engineers to improve the company's technology.

Act-On had "probably taken our eye off the ball a little bit from an investment in engineering perspective," Johnson said Thursday. The two offices slated for closure both focused on sales; she said the company plans to replace some of those jobs with engineers in Portland.

Act-On plans to add 50 Portland employees in the next six months, according to the company, bringing the work force in its downtown headquarters to about 175. The company will employ about 200 altogether, down from 240 before the cuts.

When Act-On decided to consolidate operations in Portland, Johnson said that prior CEO Andy MacMillan -- who had run the company since 2015 -- opted to step down rather than leave his home in the Bay Area.

"Moving and being in the office every day was not something that was right for him and his family," Johnson said. MacMillan had been chairman; Johnson said he's no longer on the board.

Before joining Act-On in 2015 as CFO, Johnson, 41, had been a vice president, corporate controller and chief accounting officer at Jive Software. She is one of just a handful of female CEOs running venture-backed Portland tech companies.

Act-On's software helps marketers manage their contacts and sales leads. It has reported $72 million in venture capital funding, a high level by Portland standards.

Founded in 2008, Act-On moved its headquarters from Beaverton to downtown Portland in 2016. It had 400 employees at the start of that year before laying off at least three dozen workers. It also cut jobs in 2015.

Also Thursday, Act-On promoted vice president Bill Pierznik to chief operating officer and named Ryan Brady, previously vice president of finance, to replace Johnson as CFO.

Act-On had hoped to start generating cash in 2017, according to Johnson, but she said it narrowly missed its target. Thursday's restructuring means the company will meet that goal in 2018, and have additional resources to spend on its core technology.

"One of the things we felt was really important to the company was to put some material investment" in its products, Johnson said.

This article has been substantially updated with additional comment from Johnson.

-- Mike Rogoway; twitter: @rogoway; 503-294-7699