Nextdoor (NYSE:KIND) layoffs are on the way as the social network company prepares to cut its headcount by 25%!
These job cuts will result in roughly 200 layoffs at Nextdoor. The company notes that these cuts are part of a cost reduction plan that should save it $60 million annually.
Sarah Friar, CEO of Nextdoor, said the following about the layoffs:
“While our opportunity and belief in the transformative power of community remains unwavering, and our business is financially strong with a healthy balance sheet, we must follow through on our commitment to our shareholders. This means right sizing our business and aligning our team and other expenses with our near term revenue expectations. We expect that these actions will position us to reach quarterly free cash flow breakeven by the end of 2025.”
Nextdoor Layoffs Announced Alongside Q3 Misses
The layoffs at the company come after it posted lackluster results for the third quarter of 2023. That includes adjusted EPS of -10 cents and revenue of $56.09 million. Both of these were just below Wall Street’s estimates of -9 cents per share and revenue of $56.3 million.
With all of this news comes some 972,000 shares of KIND stock traded. For the record, its daily average trading volume is about 1.2 million shares. KIND stock is also down 15.4% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.