SoundHound AI Plans 27% Global Workforce Cut in Push for Profitability

SoundHound AI plans to shrink its worldwide staff by roughly 27% under a restructuring announced Nov. 5, a step the voice AI company says will help it reach sustained profitability. The announcement came alongside record third-quarter revenue.

The company estimates $18 million to $22 million in pre-tax charges from the plan. It aims to put more than $80 million in cost actions in place before Jan. 1, 2027. SoundHound has also identified $120 million in annualized cost synergies from combining with LivePerson. The synergy figure is stated as a yearly amount, while the cost-action target has a deadline before 2027.

A March 2026 snapshot put SoundHound’s worldwide headcount at roughly 953, before the LivePerson integration. That earlier figure does not establish the workforce base for the 27% reduction, so it cannot be used to calculate the number of positions affected.

The restructuring is also tied to a business-model change. SoundHound is shifting toward hosted services and plans to rely less on upfront licensing, which can make quarterly revenue uneven. The company is also exiting business lines it considers non-core.

Chief Financial Officer John Collins linked the move away from non-core lines to an effort to build more predictable revenue. He also described rapid integration of LivePerson as a priority, connecting the acquisition with the shift in revenue model.

Management projects sustained adjusted EBITDA profitability in the second half of 2027. The cost-action target comes before that longer-term profitability goal.