Smith Micro Announces Cost Cuts, Leadership Changes to Drive Growth and Profitability

Smith Micro Software has implemented strategic cost reductions and leadership changes to enhance operational efficiencies and reduce costs. The company has reduced its workforce by approximately 30% and expects to save $1.8 million per quarter. Leadership changes include the retirement of David Blakeney, promotion of David Sperling to chief technology officer, and promotion of Anup Kaneri to chief product officer. The reorganization aims to strengthen the company's financial foundation and accelerate its path to profitability.

Smith Micro Software, Inc. (Nasdaq: SMSI) has implemented strategic organizational changes aimed at enhancing operational efficiencies and reducing costs. The company has reduced its workforce by approximately 30%, resulting in an expected cost savings of $1.8 million per quarter, or $7.2 million for 2026, excluding employee separation costs, according to the company's announcement company's announcement.

William W. Smith Jr., president, chief executive officer, and chairman of the board of Smith Micro, stated, "While difficult, this strategic realignment of resources is a meaningful step forward and is necessary for the Company’s success. We remain focused on delivering value to our customers and stakeholders and will continue to invest in strategic areas that support innovation and long-term success."

The reorganization follows a comprehensive review of the Company’s operating structure and future needs, based on the completion of certain development efforts. Leadership changes include the retirement of David Blakeney, senior vice president of engineering, after 14 years of service, and the promotion of David Sperling to chief technology officer and senior vice president of engineering, responsible for all development activities. Anup Kaneri, vice president of worldwide products, was promoted to chief product officer, responsible for all product strategies.

The Company's board of directors has also voluntarily waived their fourth quarter cash board retainer fees, providing additional cash savings of approximately $45,000. In lieu, the board has been granted fully vested restricted stock awards of comparable value. Smith Micro is building a culture of continuous improvement and operational efficiency, expecting to reduce additional non-employee-related expenses to further strengthen its financial performance while delivering exceptional value to its customers and stakeholders.