Nextdoor Cuts 25% of Full-time Staff Amid Efforts to Achieve Break-even by 2025

Despite healthy balance sheet and 4% YoY revenue growth, the company reported a $38 million loss this quarter and is seeking to cut back on expenses amidst increased economic pressures in tech industry.

Nextdoor, the neighborhood-focused social network, is laying off 25% of its full-time staff, nearly 200 employees, as part of a cost-cutting plan which aims to reduce its current personnel expenses by up to $60 million annually.
Despite a 4% YoY revenue growth and a healthy balance sheet, the company's losses have widened, resulting in a quarterly loss of $38 million.
The layoffs are reportedly in line with the company's long-term strategy to break even on quarterly free cashflow by the end of 2025.
The decision comes amidst an industry-wide trend of employee reductions in large tech companies, with nearly 249,000 employees laid off across 1,100 tech companies in 2023.
Nextdoor's Chief Financial Officer, Mike Doyle, resigned effective Tuesday, and has been replaced by Matt Anderson, Nextdoor's current head of finance and strategy.