$7.2M Yearly Savings: Smith Micro Reduces Workforce by 30%, Board Forgoes $45K in Stock Award Fees

October 15, 2025 – 4:01 PM

The company anticipates annual savings of $7.2 million.

pittsburgh — (BUSINESS WIRE) — Smith MicroSoftware, Inc. (NASDAQ: SMSI) has announced that it is undertaking organizational changes aimed at enhancing operational efficiency and cutting costs. This aligns with the company’s broader vision for the future. The restructuring, which includes some workforce reductions, is seen as essential to realign costs with long-term business goals, enhance financial stability, and expedite the journey toward profitability.

William W. Smith Jr., the president and CEO, acknowledged the tough nature of this choice and expressed gratitude to the affected employees for their years of dedication. He emphasized that while it’s a challenging situation, these changes are crucial for the company’s success and commitment to delivering value to customers and stakeholders. The organization plans to continue investing in strategic areas to promote innovation and long-term success.

This move follows a thorough evaluation of the company’s operational framework and its future requirements. Around 30% of employees will be affected, which will help reduce costs by $1.8 million quarterly, amounting to $7.2 million in savings for 2026. Notably, these figures do not include the costs associated with employee separations. The initiative aims to enhance efficiency and profitability. In a further effort to support financial performance, the Board of Directors has waived their cash retention fee for the fourth quarter, which translates to about $45,000, and they will instead receive equivalent restricted stock awards.

In terms of leadership changes, the company is promoting several individuals:

• David Blakeney, Senior Vice President of Engineering, retired after 14 years on September 23, 2025.
• David Sperling will take on the role of Chief Technology Officer and Senior Vice President of Engineering, overseeing all development activities.
• Anup Kaneri has been elevated to Chief Product Officer, responsible for product strategy.

Smith expressed deep appreciation for Blakeney’s exceptional contributions and leadership, which have been pivotal in reaching key development milestones. Looking ahead, the company is optimistic about its trajectory and believes its team is well positioned for continued operational success.

About Smith Micro Software

Smith Micro specializes in creating software that enhances mobile experiences and provides solutions for major global wireless service providers. Their offerings include Digital Family Lifestyle™ solutions and powerful voice messaging capabilities, which aim to enhance modern connected lifestyles and foster consumer engagement via smartphones and IoT devices.

Forward-looking statements

Some statements in this announcement are considered forward-looking as per the Private Securities Litigation Reform Act. These include expectations on future cost savings from the changes, as well as future performance and profitability. Such statements carry risks and uncertainties that could lead actual results to differ significantly from those projected. Factors affecting this could include legal or timing delays, unexpected disruptions, and changes in customer demands, among others.

PR/IR inquiries:
Charles Messman
Smith Micro Software
+1 (949) 362-5800
IR@smithmicro.com

Source: Smith Micro Software, Inc.