Amid the restructuring plans, Planet labs, a US-based satellite imagery and data analysis company has reduced its workforce by 10 per cent. The cuts will affect around 117 employees of the company.
As per media reports, the downsizing will cost the company around $7 million to $8 million in total pre-tax costs. These expenses will include severance payments and other termination benefits for the affected employees. However, Will Marshall, CEO, Planet Labs, acknowledged that he was responsible for the decisions that brought the company to its current situation. He admitted that the expansion of the company following its going public in 2021 had added to its expenses and made matters more complex.
In a blog post published on 1 August, 2023, he also pointed out that such downsizing changes are serious and not made without careful consideration.
As per SEC or the US Securities and Exchange Commission, the company officials stated that they are looking forward to prioritising future growth prospects and operational efficiency that will ensure the firm’s long-term strategy and profitability. The company is focusing its efforts more on the highest return on investment (ROI) opportunities for the business and mission.
Media has been told that all the affected employees will get a minimum 14 weeks of pay. Additionally, the company will also offer monetary support the employees’ ongoing healthcare, immigration assistance benefits, and career counselling for those who opt for it.
