Yext (NYSE:YEXT) layoffs are coming for the cloud customer services company’s employees as it wants to lower its operating expenses.
The Yext layoffs will result in 12% of the company’s workers losing their jobs. It plans to complete these layoffs by the end of the second quarter of fiscal 2025.
The Yext layoffs are part of the company’s plan to reach profitability. It hopes to do so by reducing its operating costs. It notes that the job cuts will result in it suffering a roughly $5 million charge. This should be incurred in fiscal Q2 2025.
Yext Layoffs Affect Management Team
Here’s what Yext CEO Michael Walrath said about the layoffs in an email sent to company employees:
“As part of the restructuring, we have made some changes to our executive team. Yvette Martinez-Rea is now our Chief Operating Officer. Yvette will be focused on ensuring that our newly restructured organization runs smoothly and everyone is working together to help our customers quickly and efficiently.”
Walrath also addressed some of the other reasons for the layoffs in his letter to employees. Specifically, the CEO pointed to the “challenging macro environment” as a reason for these layoffs.
YEXT stock is down 2.8% as of Thursday afternoon. The stock is also down 18.8% year-to-date.
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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.
