GoodRx Holdings, Inc. (GDRX) To Cut 16% of Workforce

On August 30, 2022, the Board of Directors of GoodRx Holdings, Inc. (NASDAQ: GDRX) approved a reduction in force involving approximately 140 employees of its indirect wholly owned subsidiary GoodRx, Inc., representing approximately 16% of GoodRx, Inc.’s workforce, primarily in its technology-focused and marketing groups. This action is part of the Company’s initiatives to re-balance its investments and cost structure into prioritized areas that the Company believes will drive incremental long-term growth and improve margins, consistent with the Company’s comments during its second quarter 2022 earnings call.

Since June 30, 2020, the Company has transitioned from being a private company to a public company, and its labor force has more than doubled. The Company is focused on efficiently growing its core prescriptions business, accelerating its pharma manufacturer solutions business, and doubling down on consumer engagement.

As the Company focuses on these goals, it is consolidating functions and eliminating or reducing investment in areas of lower focus.

The Company expects that the reduction in force will be substantially completed within approximately 60 days of August 31, 2022.

The Company expects to incur pre-tax charges of between approximately $5 million and $7 million for the reduction in force, substantially all of which is expected to be incurred in the third quarter of 2022. These charges will be substantially settled in cash and almost entirely consist of one-time termination charges arising from severance obligations, continuation of salaries and benefits over a 60-day transitional period during which impacted employees remain employed but are not expected to provide active service, and other customary employee benefit payments in connection with a reduction in force. This reduction in force is expected to result in approximately $23 million to $25 million of annualized run rate cash savings associated with the approximately 140 employees, excluding the hiring of new employees or other additions to the Company’s costs and expenses.

The Company may incur additional expenses not currently contemplated due to events associated with the reduction in force. The charges that the Company expects to incur in connection with the reduction in force and annualized run rate cash savings are estimates and subject to a number of assumptions, and actual results may differ materially.

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