2023-07-14 07:04:14 ET
BARK Inc. ( NYSE: BARK ) announced late on Thursday a new cost reduction initiative that is intended to further accelerate the company’s strategic priorities of reaching sustainable profitability and free cash flow generation. The cost reduction initiative is also aimed at improving the dog-centric company's organizational and capital efficiency, and streamlining the cost structure. The initiative is expected to achieve approximately $7.2M in annualized cost savings.
In accordance with the BARK ( BARK ) initiative, there will be a net reduction of 66 positions, or approximately 8% of the company's total workforce. BARK ( BARK ) estimates that it will incur charges of approximately $1.4M in Q2 of fiscal year 2024, primarily related to cash expenditures for severance payments and payroll taxes.
Shares of BARK ( BARK ) were up 3.33% in premarket trading to $1.55 vs. the 52-week trading range of $1.00 to $2.74. BARK ( BARK ) is scheduled to report FQ1 results on August 9. The company has topped revenue estimates in six straight quarters, but missed estimates on the EPS lines in the last two quarters.
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BARK cuts 8% of workforce as part of cost reduction initiative