Latch to Lay Off 32% of Staff, Exit Property Management Business in Cost-Cutting Effort

Dow Jones08-06

Latch plans to lay off around 65 employees and service providers as part of an effort to streamline operations and cut costs.

The layoffs represent around 32% of the company's workforce and will begin on Aug. 5, the company said in a Wednesday filing with the Securities and Exchange Commission. They are expected to be complete by the fourth quarter.

The company, which recently rebranded as Door, expects to incur between $1.5 million and $2.5 million in charges related to the restructuring in the third and fourth quarters, primarily related to severance and benefits costs.

As part of the cost-cutting effort, the company also said it will exit the DOOR property management business, which it said hasn't met its profitability and growth expectations.

"Exiting the business should allow DOOR to direct its capital and its people toward the building intelligence platform at the center of its strategy," the company said.

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