NerdWallet to cut workforce by 15% as part of restructuring plan to reduce operating expenses
NerdWallet, a US-based financial comparison site, is set to cut approximately 15% of its full-time workforce as part of a restructuring plan intended to “reduce the company’s operating expenses and better position the company to execute its long-term strategic initiatives”.
NerdWallet to reduce workforce by 15%
The company revealed the restructuring plan with the publication of its Q2 2024 financial results, which indicated revenue of $150.6 million, up 5% year-over-year, alongside a GAAP loss from operations of $9.6 million.
An 8-K filing made with the US Securities and Exchange Commission (SEC) says NerdWallet expects to incur a pre-tax charge of approximately $8 million to $10 million as a result of the severance payments, employee benefits, and other related expenses from the restructuring plan, which came into effect on 1 August.
This expense, the filing says, will occur in Q3 2024, with the workforce reduction to be “largely completed by the end of that quarter”.
However, the company says this cost is intended to be offset by the realisation of around $30 million in annualised cost savings.
‘Difficult decisions’
“We are committed to building NerdWallet with a long-term orientation, and that sometimes requires difficult decisions,” NerdWallet co-founder and CEO Tim Chen says in the filing.
“This decision is part of a larger effort to improve our operational efficiency and better position NerdWallet to invest more in our most important long-term strategic initiatives.”
A statement made by Chen in the company’s financial results elaborates on what these initiatives are.
“We remain focused on efficiency and will be investing more in our most important long-term strategic priorities, including vertical integration and our paid membership offerings,” he states.
What’s NerdWallet?
Founded in 2009 and based in San Francisco, NerdWallet operates a service which connects consumers and businesses to “trustworthy and knowledgeable financial information so they can make smart money moves”.
Its product analysis pertains to personal and small business loans, mortgages, bank accounts and credit cards, and insurance products.
The company successfully expanded its services to the UK when it acquired start-up Know Your Money for an undisclosed sum in 2020.
