Spacial data company, Matterport, has announced that it will be reducing its workforce by approximately 30% in a restructuring plan aimed at reducing operating costs. The decisions on job eliminations will depend on local laws, consultation requirements, and the company’s business needs.
In a blog post included in a securities filing, Matterport stated that it has made the difficult decision to eliminate certain roles across the company and is currently evaluating possible redundancies in the EMEA region. The restructuring aims to enhance the company’s focus, improve execution speed, and expedite the path to operational cash flow profitability, with the goal of achieving this milestone by 2024—a year ahead of plan.
Matterport anticipates incurring restructuring charges ranging from $4 million to $5 million as a result of the workforce reduction. Despite this news, shares of the company rose by 7%, reaching $3.40.
Known for its “digital twin” technology, Matterport provides interactive 3-D models that are utilized by various industries including real estate, facilities management, construction, and restoration. Last month, the company introduced an AI-focused initiative called Genesis, which aims to assist customers with tasks such as interior design, construction, and energy efficiency improvements.
Matterport reported strong performance in the first quarter of 2023, surpassing its revenue guidance with $38 million. Second-quarter results are scheduled to be released on August 8.