SoundHound AI has announced a restructuring plan that includes a 27% reduction of its global workforce. The company, which trades on the Nasdaq under the ticker SOUN, aims to achieve long-term profitability through these measures. The announcement coincided with the release of third-quarter results that featured record revenue.
The restructuring process is expected to incur pre-tax charges ranging from $18 million to $22 million, covering severance and related expenses. Additionally, SoundHound targets over $80 million in cost actions to be implemented before January 1, 2027. The company is also integrating LivePerson, identifying $120 million in annualized cost synergies.
Management is shifting its business model toward hosted services to create more predictable revenue streams, moving away from a reliance on upfront licensing deals. The company plans to exit non-core business lines as part of this strategic pivot. CEO Keyvan Mohajer projects sustained adjusted EBITDA profitability by the second half of 2027.
SoundHound previously underwent a significant workforce reduction in 2023, which estimates suggest affected 40-50% of staff. Founded in 2005 by Stanford alumni, the firm entered the public market via a SPAC merger in 2022. Currently, company shares are trading near 52-week lows, approximately at $4.
