Planet Labs to Lay Off 17% of Global Workforce

Ibadan, 28 June 2024. – Planet Labs has announced in an SEC filing, that it plans to lay off 180 workers, representing about 17% of its global workforce to reduce costs. The Company noted that the action was consistent with its ongoing focus to align its resources to the market opportunity, improve operational efficiency, and support the long-term growth and profitability of the business.

As a result of the headcount reduction, the Company estimates that it will incur non-recurring charges of approximately $9.5 million to $10.5 million in aggregate pre-tax costs in connection with the reduction, consisting of one-time severance and other termination benefit costs. Furthermore, Planet Labs expects that it will incur the majority of these charges in the second quarter of fiscal 2025 and that the headcount reductions, including related cash payments, will be substantially complete by the end of the fiscal year ending January 31, 2025.

Nevertheless, the amounts do not include any non-cash charges associated with stock-based compensation. Likewise, the timing and cost estimates related to the headcount reduction plan are subject to various assumptions and actual results may differ materially from those expected and disclosed. Furthermore, the Company intends to exclude the charges associated with the headcount reduction from its non-GAAP financial metrics, including Adjusted EBITDA.

Planet Labs disclosed its financial results for the first quarter of the fiscal year 2025, reporting a 15% year-over-year first-quarter revenue increase to a record $60.4 million. Likewise, the Company’s first-quarter net loss was $29.3 million, compared to $34.4 million in the first quarter of the fiscal year 2024, and the first-quarter adjusted EBITDA loss was $8.4 million, compared to a $19.1 million loss in the first quarter of the fiscal year 2024. Planet Labs ended the quarter with $276 million in cash, cash equivalents, and short-term investments.