Shares of Yelp (YELP) fell after the online review platform said it expected to pay out $8 million to $10 million this year to furloughed and former staff.
The company said in a regulatory filing that this week it implemented a restructuring calling for 1,000 layoffs and 1,100 furloughs.
Half the payment will go to each of the two groups.
At Dec. 31 Yelp employed 5,950 people worldwide, its Securities and Exchange Commission Form 10-K says.
Yelp also is "exploring additional opportunities to preserve cash, to increase liquidity and to protect its business as well as its financial health," the filing said.
The San Francisco company had $491 million of cash, cash equivalents, and marketable securities as of March 31.
“By the end of March, page views and searches … for businesses in the company’s most trafficked category, restaurants, had dropped approximately 60% compared to the beginning of the month,” Yelp said.
And page views and searches for businesses in the services category, which generate a majority of the company’s revenue, dropped 40%.
Yelp said it “expects these trends to continue as the impact of the covid-19 pandemic grows. And as a result it expects many of its customers to cancel or reduce spending on its products and services.”
Yelp shares recently traded $22.65, up 4.7%. That compares to a 1.75% gain for the S&P 500 index. The stock has dropped 39% over the past three months.