TechTarget announces restructuring plan, plans to cut 60 jobs

On December 6, 2022, TechTarget committed to a restructuring plan intended to generate operational efficiencies, strengthen the company’s financial position through reducing costs, and better align the company’s operations with its current strategic objectives. The Plan involves streamlining the operations of certain business units within the company and includes the elimination of approximately 60 positions, or approximately 5% of the company’s current workforce. The company estimates that it will incur pre-tax restructuring and related charges to its GAAP financial results of approximately $4.5M-$5M, consisting primarily of notice and severance payments, employee benefits, and related facilitation cash expenses of approximately $2M-$2.5M as well as a non-cash charge related to the vesting of share-based awards of approximately $2.5M. The company expects to incur these non-recurring, cash charges and a stock-based compensation charge related to the vesting of share-based awards for employees who were terminated in the fourth quarter of 2022. The company expects the Plan will be substantially complete by the end of the first quarter of 2023, subject to all applicable local law and consultation requirements, which may cause certain activities under the Plan to extend beyond the first quarter of 2023 in certain countries. The company may also incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the implementation of the Plan and may revise its estimates, as appropriate, consistent with GAAP. The company intends to exclude the charges associated with the Plan from its non-GAAP financial measures.