Five9 (FIVN) to cut 7% of jobs

Five9 (NASDAQ: FIVN) disclosed:

On August 20, 2024, Five9, Inc. (the “Company”) announced a reduction in force plan (the “Plan”) as part of the Company’s broader efforts to drive balanced, profitable growth, further supporting our positive, long-term outlook and focus on increasing shareholder value.
The Plan is expected to reduce the Company’s global full-time employees by approximately 7%. The Company estimates the aggregate costs associated with the Plan to be approximately $12 million to $15 million, primarily consisting of notice period payments, severance payments, employee benefits and related costs, all of which are cash expenditures. The Company expects to incur these expenses primarily in the third and fourth quarters of 2024.

The estimate of the charges that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan.

The actions associated with the Plan are expected to be substantially complete by the end of 2024.

In addition, the projected cost savings associated with the Plan were incorporated into the Q3 and 2024 guidance the Company issued on August 8, 2024. The $12 million to $15 million aggregate costs associated with the Plan were not included in the Q3 and 2024 GAAP EPS guidance issued on August 8, 2024. The Company intends to exclude these costs from its non-GAAP financial measures.
Item 8.01 Other Events.

On August 20, 2024, the Company's Chief Executive Officer, Mike Burkland, sent an email to employees about the Plan, which is attached to this Current Report on Form 8-K as Exhibit 99.1, and is incorporated herein by reference.

You May Also Be Interested In

• Synaptics CFO resigns amid pending ON Semiconductor merger
• LiveWire begins U.S. dealer deliveries of S4 Honcho Trail motorcycle
• Inhibrx Biosciences (INBX) Reiterated at Buy by Stifel After Meet with CEO, CFO