Nextdoor Cuts Staff by 25%
One of the biggest and most successful social discovery apps, Nextdoor, this month has announced that while revenue and user numbers remain strong on the app, to align with its near term revenue expectations, the company is enacting a 25 per cent reduction in employees.
Nextdoor is an app built on building communities in your immediate local area. It allows you to connect with your neighbours, discuss local issues, organise events, and meet-ups. At its best, Nextdoor helps build communities. The platform continues to expand and grow as per the recent announcement from the company. Revenue has increased by four per cent year on year to $56 million. And perhaps most importantly for the company, user numbers are on the up still, with a total of 85 million verified users on the app. Weekly usage has increased as well, with 40.4 million of those verified users regularly using the app. Unfortunately, losses have increased too. CEO Sarah Friar said:
“This reduction in our team is the hardest decision we have had to make at Nextdoor. While our opportunity and belief in the transformative power of the community remains unwavering, and our business is financially strong with a healthy balance sheet, we must follow through on our commitment to our shareholders.”
The Chief Financial Officer of Nextdoor, Nick Doyle, as part of these recent announcements, has stepped down from his role, and is being replaced by former Head of Finance and Strategy at Nextdoor, Matt Anderson. The goal is to reach a breakeven cash flow at the company by 2025. In the meantime – shares of the company fell by 15 per cent after the announcement.
Nextdoor is a unique player in the social discovery space. While it’s not explicitly about finding new friends, the established communities it has and is still growing make it an interesting proposition in the space. Like all other social discovery apps, it’s essentially about increasing human connections and kindness. Unfortunately, business cannot always be kind to everyone.
