Introduction
Satellite imagery company Planet announced on Tuesday that it is laying off 117 employees, or around 10% of the workforce, as it looks to focus on driving revenue amid an ongoing downturn in the public markets.
Background
Planet went public in December 2021 after combining with a special purpose acquisition company (SPAC). Their public listing was part of a huge boom of SPAC IPOs, though most of the space companies that went public in this way have badly failed to hit their projections on revenue and other targets. However, Planet has been one of the notable standouts amongst this crowd, consistently reporting growing revenues that end up toward the top end of their projections.
Decision to Lay Off Employees
In a note posted on the company’s blog, CEO Will Marshall said the decision to cut staff came about after "a deep assessment of our business and spending." He explained that the expansion of projects has increased cost and complexity, which slowed down the company in some regards. The decision to lay off employees was made to prioritize attention on the highest ROI opportunities for the business and mission while reinforcing the path to profitability.
Impact of Layoffs
Planet’s stock closed at $11.35 a share the day after it went public; yesterday, it closed at $3.75 a share. Marshall acknowledged that the layoffs will have significant effects on the lives of their team members and their families. He apologized for the impact of these changes and emphasized that they were made with careful consideration.
Prioritizing Revenue Amid Ongoing Downturn
Planet’s decision to lay off employees reflects its efforts to adapt to an ongoing downturn in public markets. The company has been focusing on driving revenue while navigating the challenges posed by a declining market. This move is part of their strategy to maintain profitability and ensure continued growth.
Key Takeaways
- Planet laid off 117 employees, or around 10% of its workforce.
- The decision was made after "a deep assessment of our business and spending."
- The company prioritizes attention on the highest ROI opportunities for its business and mission while reinforcing the path to profitability.
- Planet’s stock price has declined significantly since its public listing.
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