Sonder falls on plans to cut corporate workforce by 21%

Sonder Holdings

09/06/2022 18:36

** Shares of lodging rentals company Sonder Holdings Inc
 SOND.O  fall 10.3% to $1.75 
    ** SOND says it will reduce its existing corporate roles by
21% and its existing frontline roles by 7%
    ** Expects to incur $3.5 mln-$5.5 mln in one-time
restructuring costs including severance, benefits continuation,
and other support; about 80% of costs are expected to be
incurred in Q2 and the rest in H2
    ** SOND says it is restructuring to achieve positive qtrly
FCF within 2023 and cut costs by about $85 mln on an annualized
basis  urn:newsml:reuters.com:*:nNDL61PCgc
    ** Co reaffirmed its Q2 and 2022 revenue guidance
    ** Forecasts Q2 FCF of better than negative $50 mln before
one-time costs; forecasts H2 FCF of better than negative $70 mln
    ** Stock has fallen 80% YTD through last close

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))