Hippo laying off 10% of its workforce as part of reorganization plan

Hippo laying off 10% of its workforce as part of reorganization plan

Businessperson Walking Out With Exit Sign On Wall // Shutterstock To cover severance, benefits and related costs from the layoffs, Hippo expects to take a $1.8-$2 million hit in the third quarter. (Credit: Shutterstock)

Hippo Enterprises Inc. is laying off 10% of its workforce, around 70 employees, as part of an “organizational realignment,” according to a filing with the U.S. Securities and Exchange Commission (SEC).

Hippo notified most of the impacted employees on August 31, 2022, and a bulk of the layoffs took effect September 1, 2022. As part of the staff reduction, Hippo announced the “departure” of its COO and Chief Technology Officer Ran Harpaz, who will receive $250,000 in separation benefits as part of the termination, Hippo reported in the filing.

Hippo expects to take a $1.8-$2 million hit in the third quarter to cover severance, benefits, and related costs from the layoffs.

“The company is continuing to review the potential impact of the reduction, including facility lease exits and additional employee-related costs, and is unable to estimate any additional restructuring costs or charges at this time,” Hippo noted in the filing.

In a separate filing, Hippo also disclosed that shareholders have approved its proposal to execute a reverse stock split. The split will occur at a ratio ranging from 1-for-20 to 1-for-30 with the insurtech’s board making the final decision.

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