Thinkific Lays Off 30% of Staff in Restructuring
Thinkific, a Vancouver-based online-learning platform, announced it laid off 96 employees as part of a restructuring effort aimed at saving approximately US$19 million annually. The company indicated additional non-headcount related savings are expected in the first quarter of 2027.
The firm, which provides technology enabling businesses to build their own online courses, was founded in 2012 and listed on the Toronto Stock Exchange during the 2021 IPO surge, opening at $13 per share. Current analyst price targets average $2.20, reflecting significant market valuation concerns.
Read Also: Final arguments in major Canadian ESG case
According to CEO Greg Smith, speaking to BetaKit, the layoffs were concentrated in departments serving small- and mid-sized customers. This aligns with the company’s strategic shift toward mid-market and enterprise clients. In a formal statement, Thinkific confirmed the workforce reductions support its goal of achieving free cash flow margins of at least 25 percent by early next year.
Market analysts note that Thinkific’s stock price has declined significantly from its 2021 IPO valuation, with shares currently trading well below the initial $13 opening price. Greg Smith emphasized that the strategic realignment targets more profitable segments of the online education market. The company expects these changes to improve its financial position and position it for long-term growth in the competitive SaaS sector.
