Seattle-based device management company Bsquare Corp. (Nasdaq: BSQR) is laying off about 20% of its staff in the coming months.
The company disclosed the planned layoffs in a Wednesday filing with the Securities and Exchange Commission. Bsquare said in the filing the layoffs should finish by the first quarter of next year, but local laws and requirements could extend the layoffs beyond that timeframe in certain countries.
Bsquare said it wouldn't comment beyond what was disclosed in the SEC filing.
In the filing, Bsquare said the layoffs are "part of broader efforts to align the company’s cost base with its 2023 strategic and operating priorities." The company expects to incur costs of about $200,000 to $300,000 from the layoffs this quarter and next quarter as a result of severance, employee benefits and other costs.
In a March filing with the SEC, Bsquare said it had 53 employees as of the end of last year.
Bsquare was founded in 1994 and went public in 1999. The company helps clients manage internet-connected devices like point-of-sale machines, self-serve kiosks and digital signs. Bsquare's technology allows clients to run diagnostics, make upgrades and remotely shut down devices.
Ralph Derrickson, Bsquare's president and CEO, joined the company in 2019. He was previously the president and CEO of the virtual health care company Carena, which was acquired in 2017.
In its third-quarter financial results, released in November, Bsquare reported quarterly revenue of $8.4 million, down 19% from the second quarter of 2022.
"The revenue decline was disappointing as it disrupted a two-quarter trend of improvement. Our partner solutions customers cite supply chain issues and the looming recession as reasons for decreased ordering," Derrickson said in a release announcing the third quarter results. "We are shifting our planning priorities for 2023 to achieve breakeven business operations."
