Nextdoor, a social networking platform focused on neighborhoods, is laying off 25% of its workforce, or nearly 200 workers. The job cuts come as part of a major cost reduction plan, as the company seeks to reduce losses that have been widening in recent quarters.
In a third-quarter financial report published Tuesday, Nextdoor said that the job eliminations are part of a larger plan to slash its personnel expenses by up to $60 million annually. The company had 704 employees at the end of 2022, according to an annual securities filing.
CEO Sarah Friar said in a prepared statement that the decision to lay off employees was “the hardest decision we have had to make at Nextdoor.” However, she said that the company needs to “right size our business and align our team and other expenses with our near term revenue expectations.”
Friar expects that the job cuts will position the company to break even on quarterly free cash flow by the end of 2025.
The layoffs come after Nextdoor reported quarterly losses of $38 million for the third quarter of 2023, greater than the $35 million it lost during the same period last year. Revenue rose 4% to $56 million, while weekly active users increased 6% year-over-year to 40.4 million.
- Nextdoor also announced the resignation of its Chief Financial Officer, Mike Doyle. Matt Anderson, Nextdoor’s current head of finance and strategy, will take his place.
- Nextdoor’s weekly active users increased 6% year-over-year to 40.4 million in the third quarter of 2023.
- Nextdoor’s revenue rose 4% to $56 million in the third quarter of 2023.
- Nextdoor’s net loss was $38 million in the third quarter of 2023, up from $35 million in the same period last year.