Sprout Social Cuts 20% of Workforce (260 Employees); Q2 Outlook High End

Sprout Social, Inc. announced a workforce reduction plan affecting approximately 20% or 260 employees, designed to streamline its organizational structure and align costs with strategic priorities, including AI investments. The company expects to incur $18.0 million to $20.0 million in pre-tax restructuring charges, primarily for severance, with most recognized in Q3 2026. Additionally, Sprout Social anticipates its Q2 2026 financial results to be at the high end of its previously issued outlook for revenue, non-GAAP operating income, and non-GAAP net income per share.