Nextdoor, the social networking app provider, announced the resignation of Michael Doyle from his role as the company’s Chief Financial Officer, effective on Tuesday. Matt Anderson, who most recently held the position of head of finance and strategy and investor relations at the company, has been appointed as Doyle’s successor. Doyle is expected to remain at Nextdoor until December 1 to facilitate a smooth transition.
Anderson, aged 36, will receive an initial annual base salary of $475,000 and will continue to be eligible for company-sponsored benefits, according to the SEC filing. Prior to joining Nextdoor as head of finance and strategy in July 2019, Anderson served in a similar capacity at Block, a digital payments company (formerly known as Square). His professional background also includes experience at private equity firm GI Partners and investment bank Barclays.
Nextdoor has also announced its intention to reduce its full-time workforce by 25%, which equates to nearly 200 employees. This move is part of a broader strategy to trim annual personnel expenses by as much as $60 million.
Sarah Friar, the CEO of the company, revealed that this action is aimed at achieving a break-even point in quarterly cash flow by the conclusion of 2025.
The company expects that this cost-cutting plan will lead to one-time charges of approximately $12 million. These charges will primarily cover cash outlays related to notice periods, severance payments, employee benefits, and associated expenses.
Nextdoor revealed the layoffs and the change in finance leadership in conjunction with the release of its third-quarter earnings results. The company reported a net loss of $38 million, compared to $35 million in the same period of the previous year.
Sarah Friar explained during an earnings call on Tuesday that the company encountered challenging macroeconomic conditions starting in Q2 of 2022, leading to reduced advertiser budgets.
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