On Wednesday, Planet Labs (NYSE:PL) announced a reduction in workforce affecting approximately 17% of its employees.

In an exchange filing, the company announced it would reduce its global workforce by about 180, constituting approximately 17% of its workforce before the cuts.

This decision aligns with the company’s strategy to realign resources with market opportunities, enhance operational efficiency, and foster long-term growth and profitability.

Due to the workforce reduction, the company expects to incur non-recurring charges totaling approximately $9.5 million to $10.5 million before taxes. These charges include severance and other termination benefits.

The company anticipates to record most of these expenses in the second quarter of fiscal 2025.

It aims to finalize the headcount reductions, along with associated cash payments, by the end of the fiscal year ending January 31, 2025.

Nevertheless, the company affirmed that there have been no revisions to its previously announced financial guidance or targets as stated in its latest earnings update on June 6, 2024.

According to Benzinga Pro, PL stock has lost over 38% in the past year. Investors can gain exposure to the stock via Procure Space ETF (NASDAQ:UFO).

For the second quarter of fiscal year 2025, ending July 31, 2024, Planet Labs expects revenue to be approximately $59 million to $63 million (street view: 61.93 million).

Non-GAAP Gross Margin is expected to be in the range of approximately 51% to 53%.

The company sees an adjusted EBITDA loss of approximately ($10) million and ($7) million for the quarter.

Price Action: PL shares are trading higher by 1.08% to $1.88 at the last check on Wednesday.

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Planet Labs Slashes Workforce By 17%, Eyes Efficiency Amid Financial Challenges