SoundHound AI shares fell 3.83% in early Tuesday trading, the steepest decline among five AI-linked companies in the market snapshot, as the Nasdaq Composite and other major U.S. indexes also slipped.
Arm lost 3.11% and Nvidia 3.17%; Tempus AI fell 3.39%, while Super Micro Computer declined 3.51%. The Dow Jones Industrial Average dropped 0.49%, and the S&P 500 fell 0.72%. The VIX rose 5.27%.
A Nov. 5 filing with the Securities and Exchange Commission said SoundHound began a restructuring on Nov. 4. The plan includes a planned reduction of approximately 27% of its global workforce, with position decisions subject to local law, consultation requirements and business needs. Employees would be affected by the planned cuts, while the company expects to use resulting savings for strategic initiatives.
SoundHound estimated pretax restructuring charges of $18 million to $22 million, primarily for severance and post-employment benefits. It expects most charges in the fourth quarter of 2026 and substantial completion of the restructuring by year-end.
For the third quarter of 2026, SoundHound reported revenue of $62.4 million, up 48.5% from a year earlier, and a net loss of $46.4 million. The company expects to reach sustained positive adjusted EBITDA during the second half of 2027.
