AMPL 8-K
Amplitude, Inc. (AMPL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.05. Costs Associated with Exit or Disposal Activities.
On April 3, 2023, the Board of Directors of Amplitude, Inc. (the “Company”) approved a plan (the “Plan”) to reduce its global workforce by approximately 13%. The Plan is intended to improve operational efficiencies and reduce operating costs while allowing the Company to scale for the future, continue its path to profitability, and deliver on its long-term vision.
The Company estimates that it will incur non-recurring charges of approximately $7 million to $9 million in connection with the Plan, consisting primarily of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related costs, as well as non-cash expenditures primarily related to the vesting of share-based awards. Of the total amounts, $6 million to $8 million is expected to result in future cash outlay. The Company expects that the majority of the restructuring charges will be incurred in the second quarter of fiscal 2023 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the second quarter of fiscal 2023.
The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan.
Item 7.01. Regulation FD Disclosure.
On April 5, 2023, Spenser Skates, the Chief Executive Officer of the Company, sent a letter to the Company’s employees regarding the reduction of the Company’s workforce under the Plan, which letter is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference.
The information in this Item 7.01, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Letter to Employees from Spenser Skates, dated April 5, 2023. | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document). | |
Forward-Looking Statements
This Current Report on Form 8-K contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Plan and the expected timing and charges related to the Plan. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or phrases or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not statements of historical fact, and are based on current expectations, estimates, and projections about the Company’s industry as well as certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. These statements are subject to numerous uncertainties and risks that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including the risks and uncertainties included under the caption “Risk Factors” and elsewhere in the reports and other documents that the Company files with the Securities and Exchange Commission from time to time, including the Company’s Annual Report on Form 10-K. The forward-looking statements made in this Current Report on Form 8-K relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this Current Report on Form 8-K to reflect events or circumstances after the date of this Current Report on Form 8-K or to reflect new information or the occurrence of unanticipated events, except as required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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AMPLITUDE, INC. | |||||
| Date: April 5, 2023 | By: | /s/ Christopher Harms | ||||
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Name: Christopher Harms | ||||
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Title: Chief Financial Officer | ||||
Exhibit 99.1
Team,
On behalf of myself and the co-founders, I want to share the most difficult decision we’ve had to make since starting Amplitude over ten years ago. Today, we are reducing the size of our global team by 13%.
Of the 99 roles in total, the majority of those impacted are in the GTM organization, with the balance coming from product development, the CFO organization, and the people & places team. The impacted employees received an email from me about 15 minutes ago and they’re being invited to 1:1 meetings to discuss the transition. For those working in North America, today (April 5) will be their last day. In EMEA and APJ, it will be tomorrow (April 6).
To those of you who are impacted, we are sorry. The responsibility for everything leading us here is fully on myself, Curtis, and Jeffrey.
I want to give you context on why we’re making this decision. We’ve always strived to be disciplined in our approach to growth, investment and expansion. Unfortunately, we are not immune to the headwinds being faced by our customers or to the macroeconomic environment at large. After evaluating multiple options, it was clear we needed to take these steps to enable us to scale for the future, continue on our path to profitability, and ultimately deliver on our long-term vision.
How are we supporting people?
There’s no great way to say goodbye in a situation like this, especially when so many have contributed so much to get us to where we are today. We want to offer as much support as we can and be transparent in the process, so here’s what people will receive:
| • | Severance: We’ll pay at least 16 weeks of salary in the US (as a combination of salary and severance with a signed agreement). People who’ve been here longer will get more. Our international employees will also remain on payroll until June 15 and their severance package will be consistent with regional best practice. |
| • | Healthcare: Health benefits will continue through June 30, 2023, and people in the US will have access to their plan via Cobra for at least 18 months. Amplitude will pay for at least the first two months of Cobra premiums and more for those with longer tenure. |
| • | Stock: Equity vesting through June 15, 2023. |
| • | Assistance: Continuation of Employee Assistance Program and Modern Health through June 30, 2023. |
| • | Career support: Workplace Transition Services & Support for six months starting April 5, 2023. |
| • | IT equipment: All impacted employees can keep their laptops, once they have been erased remotely by IT, as well as other equipment. |
| • | Immigration support: Visa support for foreign nationals. |
Where to from here?
Today’s news is incredibly difficult for those impacted, but we know it affects everyone who remains as well.
As we’ve said before, the digital analytics category is still in its very early days. It’s only the most forward thinking companies that are just starting to realize its full potential. There is undeniable momentum behind this shift. In these challenging times, we see so many customers depend on us to help them build better products and drive growth and we see so many more out there that we could be reaching. Our ambition to fulfill our vision has never been stronger. Expect to hear more about how we’ll get there in the weeks ahead.
Final thoughts
To those of you impacted, our focus is on helping with your transition today. Please take advantage of the 1:1 meetings that are in your calendar, and reach out to [email protected] with any other questions.
For everyone else, please support your colleagues today however you can. We’ll host a series of All Hands meetings tomorrow for EMEA, the US and APJ so we can address your questions. Then we’ll reset and look to the future.
Spenser, Curtis, and Jeffrey