Definitive Healthcare drops after cutting 154 jobs in restructuring

Definitive Healthcare earlier today said it committed to a restructuring plan intended to reduce operating costs, improve operating margins, and continue advancing its “ongoing commitment to profitable growth.” The plan provides for a reduction of the company’s current workforce by 154 people. Definitive estimates that in the first half of 2024 it will incur pre-tax cash restructuring and related charges to its GAAP financial results of approximately $6.5M to $7.2M, consisting primarily of severance payments, employee benefits, and related cash expenses, as well as an approximate $1.5M non-cash charge related to the vesting of share-based awards for employees who are terminated. The company expects the plan will be substantially complete by the end of Q2. Shares of Definitive Healthcare dropped 9% to $8.83 at the close of Thursday’s trading.