Veritone (NASDAQ: VERI) targets 30% cost cut with major workforce reduction
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Veritone, Inc. announced a restructuring plan that includes a significant workforce reduction and cuts to third-party operating costs. The plan is expected to reduce the company’s workforce by at least 25% compared to its employee count as of March 31, 2026.
The restructuring, which began on June 10, 2026 and is expected to be substantially completed by late July 2026, aims to achieve an annualized reduction of up to 30% in operating expenses versus the trailing twelve months ended March 31, 2026. Veritone cannot yet estimate the total charges, which will mainly relate to severance, transition costs, certain contract exit costs and continued employee benefits.
Positive
- None.
Negative
- Large workforce reduction and restructuring charges: Veritone plans to cut at least 25% of its employees and cannot yet estimate the severance, contract exit and other restructuring costs, creating near-term operational and financial uncertainty.
Insights
Veritone launches major cost-cutting with sizable layoffs to lower expenses.
Veritone is implementing a restructuring plan involving at least a 25% workforce reduction and lower third-party operating spending. Management targets an annualized operating expense cut of up to 30% versus the trailing twelve months ended March 31, 2026.
This scale of restructuring suggests meaningful changes to the company’s cost base and possibly its operating footprint. However, the company states it cannot yet reasonably estimate the related charges, which introduces near-term earnings uncertainty as severance and contract exit costs are recognized.
The company expects the workforce reduction, begun on June 10, 2026, to be substantially completed by late July 2026, with overall plan completion in Q3. Subsequent filings should quantify restructuring charges and show whether the targeted expense reductions flow through to reported operating results.
8-K Event Classification
Item 2.05 — Costs Associated with Exit or Disposal Activities
1 item
Item 2.05
Costs Associated with Exit or Disposal Activities
Financial
The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.
Key Figures
Target operating expense reduction: up to 30%
Workforce reduction: at least 25%
Plan decision date: June 1, 2026
+3 more
6 metrics
Target operating expense reduction
up to 30%
Annualized reduction vs trailing twelve months ended March 31, 2026
Workforce reduction
at least 25%
Share of employee count as of March 31, 2026
Plan decision date
June 1, 2026
Date company decided to implement restructuring plan
Workforce reduction start
June 10, 2026
Date workforce reduction began in structured phases
Expected completion of workforce reduction
late July 2026
Company expects substantial completion by this time
Plan completion period
Q3
Plan expected to be completed in the third quarter
Key Terms
restructuring plan, workforce reduction, operating expenses, trailing twelve months, +1 more
5 terms
restructuring plan financial
"the decision to implement a restructuring plan (the “Plan”)"
A restructuring plan is a company’s roadmap for reorganizing its operations, debts, or assets to improve financial health and efficiency; think of it as rewriting a household budget and chores when income changes. Investors care because the plan can affect a company’s ability to repay loans, generate profits, and sustain growth—successful restructuring can restore value, while a poorly executed one can signal continued trouble or reduced returns.
workforce reduction financial
"includes a workforce reduction that was initiated on June 10, 2026"
operating expenses financial
"intended to reduce up to 30% of the Company’s operating expenses"
Operating expenses are the routine costs a company pays to keep its business running day to day — things like salaries, rent, utilities, office supplies, and marketing. Investors watch them because they reduce the profit available to shareholders and reveal how efficiently a company runs; lower or well-controlled operating expenses (relative to revenue) are like trimming household bills to improve savings.
trailing twelve months financial
"as compared to the trailing twelve months ended March 31, 2026"
Trailing twelve months is a rolling measure of a company’s financial performance that adds together the most recent four quarters of results to show how the business has done over the last 12 months, rather than a fixed fiscal year. Investors use it like checking a car’s last 12 months of fuel use to see current efficiency — it highlights recent trends, evens out seasonal swings, and provides an up-to-date basis for comparing and valuing companies.
forward-looking statements regulatory
"contains “forward-looking statements” within the meaning of the safe harbor"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 10, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.05 Costs Associated with Exit or Disposal Activities
On June 1, 2026, Veritone, Inc. (the “Company”) made the decision to implement a restructuring plan (the “Plan”), which includes a workforce reduction that was initiated on June 10, 2026, and a reduction in certain third-party operating costs. These actions are intended to reduce up to 30% of the Company’s operating expenses as part of a realignment of its business and cost structure.
The Company expects that the Plan will reduce the size of the Company’s workforce by at least 25% of its employee count as of March 31, 2026.
The workforce reduction began on June 10, 2026 in structured phases and is expected to be substantially completed by late July 2026. Employees affected by the Plan may be eligible to receive, among other things, severance payments based on the applicable employee’s length of service with the Company and the continuation of benefits for a specified time period post-termination, provided, that each affected employee’s eligibility for severance benefits is contingent upon such employee’s execution of a separation agreement, which includes a general release of claims against the Company.
At this time, the Company cannot reasonably estimate the costs and charges in connection with these actions. These costs and charges will relate primarily to employee transition, severance payments, exit costs of certain operating agreements and continuation of employee benefits.
Following the completion of the Plan in Q3, the Company expects to achieve an annualized reduction of up to 30% of its annual operating expenses as compared to the trailing twelve months ended March 31, 2026.
Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Certain of these forward-looking statements can be identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “should,” “could,” “estimate” or “continue” or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Such statements may include, but are not limited to, statements regarding the Company’s intent and objectives with respect to the Plan, the number of employees expected to be impacted by the Plan, the expected timing for completion of the workforce reduction and the Plan, respectively, the amount, nature, source and timing of charges incurred related to the Plan and the annualized reduction in third-party costs that the Company expects to achieve upon completion of the Plan. These forward-looking statements speak only as of the date hereof, and are based on management’s current assumptions, beliefs and information. As such, the Company’s actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include those factors discussed in the Company’s most recent Annual Report on Form 10-K, as amended, and the Company’s most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved. The forward-looking statements contained herein reflect the Company’s beliefs, estimates and predictions as of the date hereof, and the Company undertakes no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VERITONE, INC. | ||||||||
| By: | /s/ MICHAEL L. ZEMETRA | |||||||
| Michael L. Zemetra | ||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
Date: June 10, 2026
3
FAQ
What restructuring actions did Veritone (VERI) announce in this 8-K?
Veritone announced a restructuring plan that includes a workforce reduction and lower third-party operating costs. The plan is intended to realign its business and cost structure while significantly reducing ongoing operating expenses once fully implemented.
How many jobs will be affected by Veritone’s 2026 restructuring plan?
Veritone expects the plan to reduce its workforce by at least 25% compared to its employee count as of March 31, 2026. This sizable reduction reflects a broad cost-cutting initiative rather than a limited, department-specific adjustment.
What cost savings does Veritone (VERI) expect from the restructuring?
After completing the plan in Q3, Veritone expects to achieve an annualized reduction of up to 30% in annual operating expenses versus the trailing twelve months ended March 31, 2026, primarily from lower headcount and reduced third-party costs.
When will Veritone’s workforce reduction be completed?
The workforce reduction began on June 10, 2026 and is being carried out in structured phases. Veritone expects this part of the plan to be substantially completed by late July 2026, with the overall plan wrapping up in the third quarter.
Can Veritone estimate the restructuring charges at this time?
Veritone states it cannot reasonably estimate the total costs and charges associated with the restructuring yet. These are expected to include severance, employee transition costs, exit costs for certain operating agreements and continuation of employee benefits.
What severance benefits will affected Veritone employees receive?
Affected employees may receive severance payments based on length of service and continued benefits for a set period. Eligibility requires signing a separation agreement that includes a general release of claims against Veritone, consistent with common corporate severance practices.