US personal finance outfit NerdWallet is reducing the size of its 730-strong full-time workforce by about 15% as part of a restructuring plan to slash operating expenses.
The job cuts will lead to a pre-tax restructuring charge in the third quarter of $8 million to $10 million in severance payment and employment benefits. However, the Company expects to realise approximately $30 million of annualised cost savings as a result of the restructuring plan.
NerdWallet's platform is designed to help individuals and small businesses as they pick things like banking, credit card and insurance products.
The cuts come as NerdWallet reports second quarter revenue of $151 million, up five per cent year-on-year, and a GAAP loss from operations of $9.6 million.
CEO Tim Chen says that the company "fell short of our guidance for non-GAAP operating income due to unexpected headwinds in organic search traffic".
Continues Chen: "We are seeing early signs of recovery and continue to believe we have a path to achieving our mid- and long-term targets we issued in March of this year as the insurance market normalises and the lending environment loosens.
"At the same time, we remain focused on efficiency and will be investing more in our most important long-term strategic priorities, including vertical integration and our paid membership offerings."