Latch Slashes 32% of Workforce, Exits Property Management to Cut Costs
LTCH has more than doubled off its 52-week low of $0.05 on elevated volume (4.0× avg).
Summary
Latch is laying off 32% of its workforce—about 65 people—and exiting its DOOR property management business, which failed to meet profitability targets. The restructuring will cost $1.5M to $2.5M in severance and benefits over Q3 and Q4. This follows a Q1 that showed narrowing losses and a new credit facility, but the pivot signals deeper trouble in a non-core unit. The company is refocusing on its building intelligence platform, but the scale of cuts and business exit raises questions about near-term revenue and cash runway.
At the time of this announcement, LTCH was trading at $0.19 on OTC in the Technology sector, with a market capitalization of approximately $31.2M. The 52-week trading range was $0.05 to $0.30. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.