Author: Andrew Allemann Comments: 1 Comment Date: November 1, 2024

Layoffs affect fiber operations and corporate expenses.

Tucows (NASDAQ:TCX) revealed today that it has reduced its workforce by 17% as part of a strategy to enhance capital efficiency.

This decision mostly affects its Ting division, which offers fiber-to-the-home internet services, resulting in a 42% reduction of Ting’s team size.

Additionally, there were layoffs at the corporate level, although the announcement did not indicate any reductions in Tucows’ domain name division.

The Ting business is facing challenges due to rising interest rates. Traditionally, Tucows has relied on borrowed funds to support the capital-intensive process of developing fiber connections.

According to Tucows CEO Elliot Noss:

After considering all available options to finance the ongoing expansion of Ting, we implemented a capital efficiency plan. This initiative aims to restore growth in Adjusted EBITDA for both Ting and Tucows. By optimizing our cost structure and utilizing capital from our recent asset-backed securitization, we are concentrating on enhancing our market presence in our established areas as well as in major partner markets such as Memphis and Colorado Springs. Our objective is to evolve Ting into a self-sustaining cash-generating entity that supports its own operations and growth.

The organization is set to share additional information regarding its strategy during the recorded earnings call scheduled for next week.

At its peak in 2021, Tucows shares reached $91, but they have experienced a significant decline since that time. Currently, the shares are priced at below $19.

Categories: Domain Registrars Tags: NASDAQ:TCX, Tucows

November 1, 2024 at 11:38 am

It’s surprising to see yet another round of layoffs, marking the 4th or 5th instance in recent years.

This raises questions about the future prospects of Tucows, particularly within the domains division. It also makes one think about the impact such changes have on employee mental health and morale, especially as we approach the holiday season.

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