NerdWallet to Cut 15% of Workforce

NerdWallet, a US-based financial comparison site, announced plans to cut approximately 15% of its full-time workforce as part of a restructuring effort aimed at reducing operating expenses and aligning with long-term strategic goals.

The restructuring was disclosed alongside NerdWallet’s Q2 2024 financial results, which reported $150.6 million in revenue, a 5% increase year-over-year, but also a GAAP operating loss of $9.6 million.

According to an 8-K filing with the US Securities and Exchange Commission (SEC), the company expects to incur a pre-tax charge of $8 million to $10 million due to severance payments, employee benefits, and related expenses. This charge will be reflected in Q3 2024, with the workforce reduction expected to be largely completed by the end of that quarter.

NerdWallet anticipates that these costs will be offset by an estimated $30 million in annualised cost savings.

“We are committed to building NerdWallet with a long-term orientation, and that sometimes requires difficult decisions,” said Tim Chen, NerdWallet co-founder and CEO. He emphasised that the restructuring is part of a broader effort to improve operational efficiency and focus on key strategic priorities, including vertical integration and paid membership offerings.

Founded in 2009 and based in San Francisco, NerdWallet connects consumers and businesses to financial information on personal and small business loans, mortgages, bank accounts, credit cards, and insurance products. The company expanded to the UK in 2020 with the acquisition of start-up Know Your Money.