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Manufacturing & engineering

Movella Holdings to slash workforce by 20%; stock slide continues

Movella Holdings Inc announced on Wednesday that it has reduced its employee headcount by about 20% due to prevailing market conditions.

The sensors maker also said it has chosen to restructure its operations by exiting certain non-core business activities.

Movella expects the corporate initiatives will result in quarterly cost savings of about $2.0 million.

The company added that it expects to take a restructuring charge of between approximately $1.1 million and $1.6 million in the third quarter of 2023.

Shares of Movella slipped 4% to $0.70 in late-morning trading on Wednesday.

Movella Holdings went public in February this year following a merger with SPAC Pathfinder Acquisition Corp that valued the combined entity at an enterprise value of $504 million.

The company now sports a market capitalization of just $35 million.

Contact Sean at sean@proactiveinvestors.com