The decision to right-size the business in line with the long-term revenue forecast is expected to enable the company to reach quarterly free cash flow breakeven by the end of 2025.

Next door lays off 25% of its full-time staff as part of its cost reduction exercise.

"This reduction in our team is the hardest decision we have had to make at Nextdoor” said CEO Sarah Friar. 

“While our opportunity and belief in the transformative power of community remains unwavering, and our business is financially strong with a healthy balance sheet, we must follow through on our commitment to our shareholders, she added.

The decision to right-size the business in line with the long-term revenue forecast is expected to enable the company to reach quarterly free cash flow breakeven by the end of 2025.

Nextdoor is the neighborhood network. Neighbors, businesses of all sizes, and public agencies in more than 315,000 neighborhoods across 11 countries turn to Nextdoor to connect to the neighborhoods that matter to them so that they can thrive.