Short-term accommodation provider Sonder is cutting its corporate workforce by 17%, or approximately 106 roles.
The company said it hoped to achieve about $11 million in annualized cost savings as a result of the cuts, which it expects will be completed by the end of the first quarter.
San Francisco-based Sonder, which was founded in 2014, anticipates costs related to the job losses at between $2 million and $3 million.
This is not the first time Sonder has reduced its workforce, with the company announcing a restructure in June 2022 just six months after its public listing. The restructure included shedding 21% of corporate employees and 7% of front-line staff.
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Last April the company was at risk of delisting from the Nasdaq when its stock fell below $1 for 30 consecutive days.
Prior to its Nasdaq listing, the company raised more than $800 million, including $210 million in Series D in mid-2019 and $170 million in Series E about a year later.
Sonder reported a 29% increase in revenue to $161 million in the third quarter of 2023, which it attributed to an increase in bookable nights. At the time CEO Francis Davidson said he was pleased with the progress the company was making towards its “goal of sustainable free cash flow.”
The company has not yet confirmed the date for its fourth quarter and full-year 2023 results.
