Sarcos Technology to reduce headcount by 300 employees, sees $1.5M Q3 charge

Sarcos Technology and Robotics Corporation announced that it has further refined its sales strategy to focus on products that have the most potential for near-term revenue growth and strategic opportunities that show the greatest market traction and meet an acute customer need. “We have initiated a more focused business plan, concentrating on solutions that we believe have the greatest alignment with customer demand and speed to market. We are also reducing expenses and headcount and consolidating our manufacturing footprint…In conjunction with these initiatives, Sarcos conducted a thorough review of its organization and made the difficult but strategic decision to significantly reduce its headcount. The leaner structure matches the company’s refined focus and positions the Company for future growth, while reducing monthly average cash usage from approximately $6.5M in the second quarter of 2023 to $3M in the first quarter of 2024. As a result, approximately one-fourth of the Company’s approximately 300 employees will be let go across the company. The reduction in force is largely happening immediately and is expected to save approximately $14.1M annually. A one-time charge of approximately $1.5M will occur in the third quarter,” noted the company.