After completing the acquisition of Honest Day's Work earlier this month, Latch, Inc. LTCH has announced its intention to significantly reduce its workforce in the United States and Taiwan, with a reduction of nearly 59%. This strategic move is part of Latch's ongoing efforts to enhance operational performance and effectiveness. The layoffs will be completed by Nov 1, 2023.
The buyout has enabled the company to speed up its cost-saving process. The lowered headcount allows Latch to take up additional cost-cutting measures to be implemented on SaaS software licenses and other systems. Through this strategic initiative, Latch aims to create a scalable foundation for growth.
Apart from trimming its workforce, the company has rejigged its management team. Jamie Siminoff is expected to serve as CEO later this year; Luciano Panaro will serve as Chief Technology Officer; David Lillis is expected to become Chief Financial Officer; Claire Duval will become VP of Operations; Eugenia Adjigogovic will become Head of People and Chris Peckham has recently joined as Head of Sales.
Latch has an efficient remote global workforce, which will become most efficient when co-located in St. Louis. Through this hybrid approach, the company will source global talent with a centralized office in St. Louis to support a sustainable business.
Siminoff backed the new measures by saying that they will set the stage for long-term business growth. By providing high-quality products and services at the lowest cost, the company will be able to improve sales and profits and create value for its stockholders.
The newly appointed team has ample knowledge and experience to meet the unique requirements of Latch. Lillis will join Latch as a CFO later this year and oversee financial planning, analysis, reporting and treasury management. He will work alongside the executive team to streamline processes, optimize costs and provide actionable insights to make informed decisions.
Zacks Rank & Key Picks
LTCH currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Ford Motor Company F, Oshkosh Corporation OSK and BYD Company Limited BYDDY, sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Ford is one of the world’s leading automakers. F shares are up 29.6% year-to-date.
Ford has a VGM Score of B. The company surpassed earnings estimates in two out of the trailing four quarters and missed twice, the average surprise being 24.35%.
Oshkosh is a producer and seller of a varied range of vehicle bodies and specialty vehicles. The Zacks Consensus Estimates for the company’s earnings represent year-over-year growth of 76.3% for the current year.
Oshkosh has a VGM Score of A.
BYD Company is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. BYDDY shares are up 35.4% year-to-date.
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