Stem announces 27% workforce reduction

In a regulatory filing, Stem (STEM) said, “On April 9, 2025, the company announced a reduction in force plan as part of the company’s broader efforts to prioritize investments in software, reduce operating costs, increase efficiency, drive profitable growth and increase stockholder value. The Plan will reduce the company’s global full-time workforce by approximately 27%. The company estimates the total cash expenditures associated with the Plan to be approximately $6.0 million to $6.5 million, primarily consisting of severance payments, notice period payments in applicable jurisdictions, employee benefits and related costs. The company expects to incur these expenses primarily in the second quarter of 2025. As a result of the Plan, the company estimates partial year 2025 savings to be approximately $24 million and full-year 2026 savings to be approximately $30 million. These savings exclude an expected one-time GAAP pre-tax charge in the second quarter 2025 in the range of $6.0 million to $6.5 million, substantially all of which is expected to be related to severance payments and post-employment benefits, which the company expects to treat as an adjustment item for purposes of reporting adjusted EBITDA. The actions associated with the Plan are expected to be substantially complete by the end of the second quarter of 2025.”