Ahh, cut another 9-10% of the company to reduce expenses. Recurring revenue continues to decline, as does total ARR and cash flow / free cash flow. But hey, at least that leadership team will get more equity to sell.
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$26m decline in revenue is a massive number. How can the cro/ceo retain their jobs for this obvious failure?
The results show how far the company has declined over the years. Great people given their marching orders. No wonder the company is doomed
the stock dropping 5% as SM and CB speak and analysts see through the smoke and mirrors.
CFO indicated on the call not all of the 9-10% reduction is expected to occur (or complete) in 2024. Time stamp of :35 past the hour.
Congratulations to all of us for a successful quarter
cuts in engineering/sales/field?
Restructuring Action
Teradata announced that it has realigned its sales function and initiated global restructuring and cost reduction actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability, resulting in a reduction of approximately 9% to 10% of its global workforce that is expected to result in:
- Operating expenses reducing by approximately $75M to $80M on an annualized run rate. Teradata expects to re-invest a portion of this amount back into revenue generating growth areas.
- Total cash expenditures from severance payments of approximately $45M to $50M, of which payments in 2024 are approximately $30M to $35M. The remaining payments will be made in 2025.
- Non-GAAP operating profit to benefit by approximately $15M to $20M in 2024.
The company also announced a global restructuring plan to optimize operations, reducing its workforce by 9-10%. This is expected to cut operating expenses by $75M-$80M annually, though initial costs will be $45M-$50M.