Thinkific Trims Workforce as Part of ‘Strategic Realignment’ to Find Growth

Thinkific went public in 2021 on the TSX with shares rising as high as $19.47 in 2021, giving the B.C. tech firm a peak market capitalization of over $2 billion.

However, Unicorn status was fleeting. By the time the first wave of layoffs hit in 2022, THNC was trading at less than $3 per share.

By the summer of 2026, the company’s share price had slipped to an all-time low of just over $1 per share,  with the firm falling short of profitability for several consecutive quarters.

This week, however, shares in Thinkific spiked substantially after the Vancouver-based platform for scaling learning unveiled a “strategic realignment of its workforce and operating model.”

This move includes the elimination of nearly 100 employees as Thinkific seeks to save $19M annually in expenses—a reduction of nearly one-third of the company’s total workforce.

Thinkific forecast restructuring costs of approximately $5 million, with the realignment anticipated to “yield a material improvement in Thinkific’s free cash flow margin.”

The reorganization will allow the B.C. company to invest more in products serving its highest value-customers, according to a statement, through offerings such as the enterprise-focused Thinkific Plus.

“The changes announced today will allow us to continue to provide excellent support for our customers, while investing in innovative product enhancements, and new AI-first products that will fuel our next stage of growth,” stated Greg Smith, cofounder and CEO of Thinkific.

“I am encouraged by what we are seeing in our strategic move upmarket, and believe it is time to lean fully into that success,” Smith commented.

“By aligning our efforts towards Plus, we will be in a position to re-accelerate growth and operate the remainder of the company with greater discipline and higher margins,” the CEO remarked.

“While it is the right decision for the business, it was not one we made lightly,” Smith added. “Everyone at Thinkific has played a role in the success we’ve had to date, and we are immensely grateful for their contributions.”