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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowNextdoor is laying off 25% of its full-time staff as the neighborhood-focused social network company cuts costs with its losses widening.
The job eliminations are part of a larger cost-reduction plan that aims to slash Nextdoor’s current personnel expenses by up to $60 million annually, the company said in a third-quarter financial report published Tuesday.
At the end of 2022, Nextdoor had 704 employees, according to an annual securities filing. A spokesperson for the San Francisco-based company confirmed to The Associated Press that almost 200 employees will be affected by the job cuts announced Tuesday.
“This reduction in our team is the hardest decision we have had to make at Nextdoor” CEO Sarah Friar said in a written 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 that the job cuts will position the company to break even on quarterly free cash flow by the end of 2025.
The company this week reported quarterly losses of $38 million—greater than the $35 million it lost during the same period last year. Revenue rose 4%, to $56 million. Weekly active users also increased 6% year-over-year, to 40.4 million.
There have been layoffs across multiple industries in the tech sector, finance, hospitality, newspapers and some higher education jobs.
Nextdoor also announced the resignation of the company’s chief financial officer, Mike Doyle, effective Tuesday. Matt Anderson, Nextdoor’s current head of finance and strategy, is taking his place.
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This site might rank up there with the similarly named Glassdoor in terms of good-intentions-gone-awry.
Both sites creating a culture of heightened scrutiny that allow the worst and most impulsive in human nature to taint the whole enterprise. For Glassdoor, companies that innovate but the innovations get misconstrued can get defamed through nastygrams of employees who quit, some of whom are identifying truths to a bad workplace culture but many are just sour grapes–yet their critiques of a workplace get taken as impartial criticism.
For Nextdoor, it ramps up both neighborhood watch and homeowners associations and places it on steroids. Every little abnormality gets observed, brought to neighborhood forums, and creates a cause for community panic. It could very well a person who “does not fit the demographics” who is in the neighborhood for innocuous reasons and still gets the cops called.
Can’t say it’ll be sad if Nextdoor looses some of its footing. It attracts Karens (male and female) like honey to flies.
Amen to that. They actively censor thought they do not agree with as well.
Nextdoor used to be a great resource but now it has morphed into a worse version of Facebook. There are so many older people that are just blatantly racist and don’t understand how to use the internet.
It’s much more than just older people, of which you’ll be before you know it. It’s more a social media for ignorance and the unaware.
If I read a complete sentence with no misspellings, I’m thrilled. And there also seems to be no trolls condemning everyone not like themselves, of which we even see here on a daily basis.
Totally agree. I deleted my Nextdoor account a few years ago. It seemed like a great idea for sharing important hyper-local information, but was really just a way to amplify the worst, most un-neighborly neighborhood behaviors imaginable. I couldn’t stand to read it.