Seattle-based Impinj expects to spend $4.1 million on expenses related to a restructuring that includes layoffs and remote office closures.
In an amended SEC filing, the RFID-maker updated the estimated cost of a restructuring that went into effect Feb. 13 and included a 9 percent workforce cut and the closure of some remote offices. The move is intended “to match strategic and financial objectives and optimize resources for long term growth,” according to the company.
Impinj currently employs 300 people. A company spokesperson declined to specify the number of employees before and after the restructuring, and did not say which offices were closed.
Impinj has seen shares drop from around $60 in June to just $12.85 as of Monday. Its most recent earnings report fell short of expectations as revenue dipped 20 percent from the year-ago quarter to $26.9 million. For the fourth quarter, Impinj posted a net loss of $9.3 million, compared with a profit of $103,000 in the same quarter a year ago.
RFID tags and technologies from Impinj are used in healthcare, retail, manufacturing, and other industries. The company launched in 2000 and made its initial public offering in 2016. Its CFO, Evan Fein, left the company last month after 17 years.
Impinj will report Q1 earnings on May 7.
“As we announced earlier this month, we anticipate softness in our first-quarter 2018 endpoint IC volumes and revenue due to shortened lead times contributing to a reduction in our order backlog, as well as ongoing reductions in inlay-partner inventory,” Impinj CEO Chris Diorio said in a statement in February. “We remain confident in our market opportunity, position, and in our vision of identifying, locating and authenticating every item in our everyday world, and connecting every one of those items to the cloud.”
