Smith Micro Software to reduce workforce by roughly 30%

Smith Micro Software (SMSI) announced that it has implemented strategic organizational changes aimed at enhancing operational efficiencies and reducing costs in line with the Company’s priorities and vision for the future. These reorganization efforts, which include a strategic reduction of the Company’s workforce, are part of a broader initiative to realign the Company’s cost structure with long-term business goals, strengthen its financial foundation, and accelerate the Company’s path to profitability. “We recognize the impact this decision has on our employees and their families, and we appreciate their contributions and long-standing service and dedication to the Company,” said William W. Smith Jr., president chief executive officer and chairman of the board of Smith Micro. “While difficult, this strategic realignment of resources is a meaningful step forward and is necessary for the Company’s success. We remain focused on delivering value to our customers and stakeholders and will continue to invest in strategic areas that support innovation and long-term success.” This decision follows a comprehensive review of the Company’s operating structure and future needs, based in part on the completion of certain development efforts, in view of the Company’s key priorities and long-term strategy. Approximately 30% of the workforce will be impacted across the Company. The reorganization will result in cost savings of $1.8 million per quarter as compared to the second quarter of 2025, or $7.2 million reduction in costs for 2026, excluding payment of employee separation costs. The reduction is intended to streamline operations, improve efficiency, and position the Company for profitability. Additionally, the Company’s board of directors has voluntarily waived their fourth quarter cash board retainer fees, which will provide cash savings of approximately $45,000, and in lieu, the Company has granted them fully vested restricted stock awards of comparable value. Beyond the reorganization, the Company is building a culture of continuous improvement and operational efficiency and expects to reduce additional non-employee-related expenses to further strengthen its financial performance while delivering exceptional value to its customers and stakeholders. As part of its reorganization the Company is announcing several leadership changes. David Blakeney, senior vice president of engineering, retired after 14 years of service on September 23, 2025. David Sperling, chief technology officer and vice president of engineering, has been promoted to chief technology officer and senior vice president of engineering, and will now additionally be responsible for all development activities. Anup Kaneri, vice president of worldwide products, was promoted to chief product officer and is responsible for all product strategies.