Zedge (NYSEAMERICAN:ZDGE) Announces Workforce Reduction and Restructuring for Long-Term Growth

Zedge, Inc. filed an 8-K form with the Securities and Exchange Commission on January 20, 2025, detailing a corporate restructuring aimed at improving profitability and positioning the company for future growth. As part of this initiative, Zedge announced a reduction in its workforce, affecting approximately 14 employees, which represents around 14% of the company’s global workforce.

The decision to implement these changes was approved by Zedge’s Board of Directors on January 20, 2025. The company stated that these actions are in line with efforts to enhance profitability and establish a solid foundation for long-term success. While Zedge is unable to provide precise estimates, it anticipates incurring non-recurring costs associated with the workforce reduction primarily during the second and third quarters of fiscal year 2025.

In a press release issued on January 21, 2025, Zedge provided further details about the restructuring plan. The company highlighted its intention to streamline operations and boost profitability, with a particular focus on the GuruShots game. The restructuring includes a reduction in Zedge’s global workforce by approximately 14%, with anticipated pre-tax annualized cost savings of around $1.7 million.

Jonathan Reich, CEO of Zedge, emphasised the company’s commitment to enhancing the GuruShots game through the GuruShots 2.0 initiative. By revamping the game and growth strategy, Zedge aims to create a more engaging player experience, reinforcing its belief in the game’s potential to drive growth and profitability.

Zedge is conducting a comprehensive evaluation of the GuruShots game to improve gameplay for existing and new players. Additionally, the company is exploring strategies to monetize the game further to boost revenue. In conjunction with these efforts, Zedge plans to reallocate investment based on key milestones to support its growth objectives.

The financial impact of the restructuring is expected to be reflected in Zedge’s financial results for the second and third fiscal quarters of 2025. Through these strategic actions, Zedge aims to enhance its operational efficiency, drive profitability, and foster sustainable growth.

For more information about Zedge’s suite of platforms and offerings, including the Zedge Marketplace, GuruShots, and Emojipedia, interested parties are encouraged to visit Zedge’s investor website. Additionally, regular updates can be found by following Zedge and Emojipedia on various social media platforms.

The company has also shared contact details for investor relations personnel for further inquiries.

Please note that the information contained in this press release and the 8-K filing contains forward-looking statements and should be considered in conjunction with the associated cautionary statements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Zedge’s 8K filing here.

About Zedge

Zedge, Inc builds digital marketplaces and competitive games around content that people use to express themselves. It offers the Zedge Ringtones and Wallpapers app, a freemium digital content marketplace that provides a wide array of mobile personalization content, including mobile phone wallpapers, video wallpapers, ringtones, and notification sounds.