Thinkific lays off 76 workers in latest round of cuts for the company
“Profitability is in sight,” says Greg Smith, CEO and co-founder of Thinkific.
Thinkific, the Vancouver-based edtech venture once valued at $1 billion, announced a reduction in workforce of 76 staff today. This is the second round of layoffs for the company, which first cut 100 employees in April 2022.
In a letter to employees, Greg Smith, CEO and co-founder of Thinkific, emphasized a focus on profitability and growth that made the layoffs necessary. “In order to support our team and invest in innovation for the benefit of our customers, we are required to act,” he said. “While there are multiple paths to profitability, we felt this swift action was better than a prolonged approach.” Smith stated that these changes are required to reach profitability by the end of 2023.
The nearly 12-year-old company has had a rollercoaster past few years. After last year’s layoffs, which saw the local tech community rally to support its former workers, the company went public on the Toronto Stock Exchange. It posted 12.3 million shares at $13 each. As of close today (1:00 pm Pacific)—and prior to the announcement of layoffs—shares were valued at $1.77.
Thinkific notably grew its revenue in 2022, reporting values of $12.6 million in Q2 and $13.3 million in Q3. "We closed the fourth quarter as expected, and with the initiatives we announced today, profitability is in sight," said Smith in a company press release. Thinkific expects a Q4 outlook of $13.5 to $13.7 million in revenue, with losses ranging from $5.1 million to $5.7 million. The company expects to release year-end results in February.
“Each of you has played a role in getting us to where we are today, as well as in our future,” wrote Smith in his letter to employees. “Please don’t ever forget that.”
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