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Aterian Announces Workforce Reduction and Cost Optimization Plan

Story Highlights
  • Aterian plans a workforce reduction by Q3 2025, incurring $2.3 million in charges.
  • Aterian’s Q1 2025 revenue fell to $15.4 million amid SKU changes and Amazon program shifts.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Aterian Announces Workforce Reduction and Cost Optimization Plan

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Aterian ( (ATER) ) just unveiled an announcement.

On May 14, 2025, Aterian announced a fixed cost reduction plan, including a workforce reduction affecting around 20 employees, expected to be completed by the end of Q3 2025. The plan anticipates restructuring charges of approximately $2.3 million, primarily for severance, with payments extending through Q2 2026. Additionally, Aterian reported its Q1 2025 financial results, highlighting a net revenue decrease to $15.4 million from $20.2 million due to SKU rationalization and changes in Amazon’s affiliate market program. Despite these challenges, the company is implementing a cost optimization plan to save $5-$6 million annually and mitigate tariff impacts, aiming to enhance its business model by diversifying manufacturing and expanding into US-made consumables.

The most recent analyst rating on (ATER) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Aterian stock, see the ATER Stock Forecast page.

Spark’s Take on ATER Stock

According to Spark, TipRanks’ AI Analyst, ATER is a Neutral.

Aterian’s overall score of 53 reflects its ongoing struggles with profitability and operational efficiency, offset by recent positive trends in cash flow and strategic plans for future growth. Despite a negative valuation outlook, the company’s guidance for revenue growth and market expansion provide a cautiously optimistic view. Technical indicators show a neutral market position, suggesting potential for recovery if strategic goals are met.

To see Spark’s full report on ATER stock, click here.

More about Aterian

Aterian, Inc. is a consumer products company that builds and acquires leading e-commerce brands with top-selling consumer products in various categories, including home and kitchen appliances, health and wellness, and air quality devices. The company focuses on selling across major online marketplaces such as Amazon, Walmart, and Target in the U.S., as well as on its own direct-to-consumer websites.

Average Trading Volume: 971,861

Technical Sentiment Signal: Sell

Current Market Cap: $19.08M

See more insights into ATER stock on TipRanks’ Stock Analysis page.

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