Proptech Firm Latch Slashes Workforce Nearly 60%
Proptech company Latch is laying off 59% of its U.S. and Taiwan-based workforce by November, or about 82 positions, according to a filing with the Securities and Exchange Commission, and putting new executives in place, including a new chief technology officer, chief financial officer, vice president of operations and other positions.
Jamie Siminoff, who founded Ring, a home security company that Amazon bought in 2018, is slated to become Latch's CEO later this year.
The layoff announcement isn't the first for the company, which announced cuts in May of about 130 positions over two weeks. Latch received a delisting notification from the Nasdaq stock exchange earlier this year after it failed to file two quarterly reports and its 2022 annual report in a timely manner with the SEC last year.
The latest layoffs come not long after Latch acquired Honest Day's Work, a company that specializes in tech for residential service providers, such as housekeepers, dog walkers, electricians and drivers, in an all-stock deal.
Founded in 2014 as Latchable, a private company, Latch specializes in smart locks and building management software. In early 2021, Tishman Speyer's special-purpose acquisition company, TS Innovation Acquisitions Corp., took Latch public in a deal that valued the company at roughly $1.5B.
Latch stock spiked briefly after it went public, but has been on a long downward slide, going from a peak of just over $17 a share in February 2021 to a current value of $1.36 a share as of Tuesday. That represents a small upward bump in the wake of the layoff news.
The company is hardly alone in laying off workers. Tech sector companies such as Section4, Carvana, DataRobot, Mural, Robinhood, On Deck, Thrasio, MainStreet and Netflix have all let people go recently, TechCrunch reports.