Nextdoor Announces Layoffs in a Bid to Cut Costs and Reinvent Itself for the Local Age
The neighborhood social network most people forgot about is making some desperate moves to stay relevant. Nextdoor just axed 12% of its workforce as CEO Nirav Tolia tries to transform the struggling platform from a digital complaint board into something people actually want to open daily. The redesigned app now emphasizes local news, emergency alerts, and an AI-powered recommendation system that mines a decade’s worth of neighbor chatter.
- The restructuring plan will slash ~$30M in annual operating expenses, positioning the company for quarterly adjusted EBITDA breakeven by Q4 2025.
- Weekly active users dipped slightly to 21.8M from 22M in the previous quarter, signaling engagement challenges despite the product overhaul.
Out of order: After years of slow growth and surging losses, CEO Tolia insisted the job cuts were “the right thing for the business.” Despite revenue climbing 3% year-over-year to $65.1M, the platform continues hemorrhaging cash with a $15.4M net loss. And as the stock has already plunged over 21% this past year, investors are left wondering if this neighborhood network can finally find its way home to profitability.
