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Nextdoor to cut workforce by 25% as it 3Q loss widens; shares slide

Published 2023-11-08, 02:10 p/m
© Reuters.  Nextdoor to cut workforce by 25% as it 3Q loss widens; shares slide
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Proactive Investors - Nextdoor Holdings has announced it will slash its employee base by 25% as part of a cost reduction plan aimed at achieving breakeven free cash flow by the end of 2025.

Shares of the neighborhood-focused social network company fell 15% to $1.55 by 2pm in New York.

Announcing a targeted cutback of up to $60 million in personnel expenses a year, CEO Sarah Friar said in a statement: “This reduction in our team is the hardest decision we have had to make at Nextdoor.”

“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,” Friar said.

“This means right-sizing our business and aligning our team and other expenses with our near-term revenue expectations.”

Still, the company said it made strides in 3Q against a difficult advertising backdrop and delivered year-over-year growth in the metrics that matter most for its long-term success.

Weekly Active Users increased 6% year-over-year to 40.4 million, and it ended September with approximately 85 million Verified Neighbors.

For the quarter, revenue increased by 4% year-over-year to $56 million but its net loss widened to $38 million from $35 million a year earlier.

The company also announced that chief financial officer Mike Doyle resigned from his position effective November 7, 2023, and will remain at Nextdoor until December 1 to help ensure a smooth transition as head of finance and strategy Matt Anderson takes over the CFO role.

Read more on Proactive Investors CA

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