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SoundHound to start layoffs to reduce costs by 40 percent

By Nithya Bose in US business news, posted January 6, 2023

SoundHound will start a new wave of layoffs and limit its operations as it works to make a profit in 2023.

The Santa Clara-based voice assistant firm did not specify how many employees will be lost as part of a 40 percent cost-cutting effort.

The job losses come shortly after another round of layoffs and salary cuts announced in November.

At the time, it was reported the company had around 450 employees.

SoundHound reported a bigger loss in the third quarter despite revenue that was 178 percent higher than a year earlier.

It went public in April 2021 as a result of a merger with a blank check firm.

SoundHound provides voice-assistant software that is similar to Apple's Siri or Amazon's Alexa.

It provides voice assistant technology to other businesses that can be used in their products.

Mercedes-Benz, Snap, and Mastercard are among its customers.

Automotive partners utilize the company's software to regulate the air conditioning and open and close windows in their vehicles.

SoundHound also has an app that can recognize songs that are being played loudly or when a user hums them.

It said recently that it will increase its usage for restaurant ordering while limiting investment in new verticals.

It intends to keep its licensing business with customers who use it in gadgets, televisions, and automobiles.

The firm said it has plans to expand sales by more than 50 percent in 2023 and to have much lower capital needs in the future.

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It stated that it expects to have positive cash flow by the end of this year.

CEO Keyvan Mohajer said: "We are announcing these actions today to align with the demands of a changing market by targeting profitability within 2023.

"We are reducing costs while prioritizing our highest sources of revenue growth.

“With over $300 million in cumulative bookings backlog, SoundHound is entering the year on a positive revenue trajectory, with a strong base of global customers shipping products using our industry-leading voice AI technology."

Source: The Business Journals

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