San Francisco-based Nextdoor will lay off 25% of its staff.
According to Nextdoor’s financial report posted on Tuesday, the job cuts are part of a broader cost-reduction plan that aims to reduce the company’s personnel expenses by $60 million.
“This reduction in our team is the hardest decision we have had to make at Nextdoor,” said Nextdoor CEO Sarah Friar. “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 continued. “We expect that these actions will position us to reach quarterly free cash flow breakeven by the end of 2025.”
In the financial report, the company highlighted metrics that included:
- A 6% year-over-year increase in total weekly active users
- A 4%, or $5 million revenue increase year-over-year
- A $38 million net loss, up from $35 million a year ago
The report also said the company’s Chief Financial Officer Mike Doyle was also resigning from his position, effective immediately, although he will remain through December 1 to help transition.
Current Nextdoor Head of Finance and Strategy Matt Anderson will assume the CFO role.
No information was provided in the report about what sort of severance laid-off employees would receive.