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HomeMarketAsana Cuts Staff 9%. Software Sector Layoffs Are Piling Up.

Asana Cuts Staff 9%. Software Sector Layoffs Are Piling Up.

Asana declined to say how many workers would lose jobs in its layoffs.

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Courtesy of Asana

The layoffs in the tech sector just keep piling up.

On Tuesday, project management software provider
Asana
 announced “the difficult decision” to cut its workforce by 9% as part of a broader corporate restructuring program.

In a securities filing, Asana (ticker: ASAN) said the plan is “intended to improve operational efficiencies and operating costs and better align the Company’s workforce with current business needs, top strategic priorities, and key growth opportunities.”

Asana will take $9 million to $11 million in nonrecurring charges in connection with the cuts. Asana declined to say exactly how many people are affected by the workforce reduction.

Asana will report October quarter results on Dec. 1. For the period, Asana is projecting revenue of $138.5 million to $139.5 million, with a non-GAAP loss of 32 to 33 cents a share.

In connection with the company’s last earnings report, Asana announced the private placement of $350 million of stock with CEO Dustin Moskovitz. The deal came at $18.16 a share. Moskovitz has made money on that transaction; Asana shares on Tuesday are 3% higher at $22.29. 

But Moskovitz is deep in the red on a huge round of open market purchases he made in Asana shares that began in June 2021 and continued steadily through February 2022. Barron’s found that over that span he bought more than 17 million Asana shares for a total purchase price of nearly $1.1 billion, for an average purchase price of nearly $64 a share. The stock has since dropped by more than 65%.

Moskovitz is probably best known as one of the co-founders of
Facebook,
now Meta Platforms (METZA), which he left to start Asana in 2008.

Write to Eric J. Savitz at eric.savitz@barrons.com

Credit: marketwatch.com

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