- Latch ( NASDAQ: LTCH ) on Tuesday announced additional job cuts to create further operating efficiencies.
- LTCH plans to reduce workforce by ~115 people, or ~37% of its current employee base.
- The job cuts are expected to result in ~$2.5M-$3.5M of total cash restructuring and related charges, substantially all of which are expected to be incurred in Q3.
- LTCH will renew focus on higher margin activities with customers and continue to grow new high margin recurring revenue.
- Increase in operating efficiencies under the new plan, along with changes announced earlier , are expected to result in ~$85M-$95M in total annualized operating savings once completed.
- LTCH projects annualized operating expenses and capex of $65M-$75M once the changes are implemented.
- The firm's earlier guidance does not reflect the latest changes or workforce reduction announced earlier.
- LTCH will provide further updates on cost-saving efforts when it issues Q2 earnings.
For further details see:
Latch to cut ~115 more jobs to create operating efficiencies