ContextLogic to reduce workforce by roughly 17%

According to a regulatory filing, on January 31, 2023, ContextLogic announced a plan to reduce its workforce by up to 150 employees, representing approximately 17% of the company’s current global workforce. The Plan is intended to refocus the company’s operations to support its ongoing business prioritization efforts, better align resources, and improve operational efficiencies. The company estimates that it will incur non-recurring charges of approximately $3M to $4M in connection with the Plan, primarily related to employee severance and other personnel reduction costs. The company expects that the majority of these charges will be incurred in the first quarter of 2023 and that the implementation of the Plan will be substantially complete by the end of the second quarter of 2023. The company expects to realize run-rate savings of approximately $14M to $23M on an annualized basis starting in the third quarter of 2023.