PagerDuty to Cut 15% of Workforce, Sees $5.5M-$7.5M in Restructuring Charges
PD has more than doubled off its 52-week low of $5.7.
Summary
PagerDuty is cutting about 15% of its workforce, with non-recurring charges estimated at $5.5M-$7.5M. The restructuring charges will hit in Q3 FY2027, and the headcount reductions should be complete by the end of Q4 FY2027. This follows the Q2 earnings report that showed revenue of $124.4M and ARR crossing $500M, but also a drop in dollar-based net retention to 98%. The layoffs signal a push to protect profitability amid slowing growth. Watch for the Q3 earnings call to see if the cost savings offset the revenue headwinds.
At the time of this announcement, PD was trading at $12.33 on NYSE in the Technology sector, with a market capitalization of approximately $974.1M. The 52-week trading range was $5.70 to $17.29. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.