Nerdy to cut 17% of its workforce

In a regulatory 8-K filing, Nerdy states: "On December 8, 2022, Nerdy announced the completion of workforce reductions of approximately 17 % of the Company’s total workforce. The reductions primarily affected variable hourly roles and included a limited number of corporate fixed personnel roles. The new products and go-to-market strategies in both the Company’s Consumer and Institutional business categories, which focus on recurring revenue relationships with higher value customers, allow for a simplified sales model and generate operating efficiencies, including in the headcount needed to operate certain areas of the business. The Company does not expect any negative impact on its ability to meet the evolving needs of its customers, its ability to grow revenue, or its capacity for innovation as a result of these actions. These decisions, in combination with other cost-reduction measures, are intended to reduce operating expenses in support of the Company’s stated goal to achieve adjusted-EBITDA profitability by the end of 2023, as previously communicated. The Company currently estimates that it will incur one-time charges in the fourth quarter of 2022 of approximately $1 million to $2 million in connection with the workforce reductions, primarily for severance payments and related employee benefit costs. The Company expects that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the fourth quarter of 2022."