Sprout Social cuts 20% of workforce in restructuring plan

Sprout Social (NASDAQ: SPT) approved a workforce reduction plan on July 8, 2026, that will eliminate approximately 260 positions, representing about 20% of its total employees, according to a press release statement.

The company began notifying affected employees on July 15, 2026. The plan is designed to restructure the company's organizational structure and align its cost base with its strategic priorities, including investments in AI-powered social intelligence.

Sprout Social estimates it will incur total pre-tax restructuring charges of approximately $18.0 million to $20.0 million, consisting primarily of cash expenditures related to employee severance payments and benefits. The company expects to recognize substantially all of these charges in the third quarter of 2026.

The company expects to substantially complete the plan by the end of the third quarter of 2026, subject to local law and consultation requirements.

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