The San Francisco-based hyperlocal social networking service provider company Nextdoor is laying off 25% of its full-time staff as a way of cutting costs. Through its third-quarter financial report published on Tuesday, it announced that it will eliminate nearly 200 positions as part of a broader plan to reduce annual personnel expenses by up to $60 million. According to an annual securities filing, Nextdoor had 704 employees at the end of 2022.
“This reduction in our team is the hardest decision we have had to make at Nextdoor,” said CEO Sarah Friar in a prepared statement. “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.”
Friar expects the layoffs to help the company achieve quarterly free cash flow break-even by the end of 2025.
Nextdoor also reported this week quarterly losses of $38 million, exceeding the $35 million it lost during the same period last year. Revenue rose 4% to $56 million, and weekly active users increased 6% year-over-year to 40.4 million. Facing widening losses, the neighborhood-focused social network Nextdoor is shedding 25% of its full-time workforce in a cost-cutting measure.
The layoffs at Nextdoor are part of a broader trend of job cuts across multiple industries, including tech, finance, hospitality, newspapers, and higher education.
In a separate announcement, Nextdoor said that its Chief Financial Officer, Mike Doyle, has resigned effective Tuesday. Matt Anderson, Nextdoor’s current head of finance and strategy, is taking Doyle’s place.