Jamf announces workforce reduction as part of strategic growth plan

MINNEAPOLIS - Apple management software provider Jamf (NASDAQ:JAMF), currently valued at $1.08 billion and trading near its 52-week low of $8.01, announced Tuesday it will reduce its workforce by approximately 6.4% as part of a strategic reinvestment plan aimed at driving long-term growth and improving operational efficiency. According to InvestingPro analysis, the company appears undervalued at current levels, with analysts maintaining a consensus buy recommendation.

The company said the workforce reduction will primarily affect go-to-market and other functions, with estimated charges of $11.0 to $12.5 million for severance payments and related costs. Most charges are expected in the third quarter of 2025, with the plan substantially complete by year-end. Despite these charges, Jamf maintains a healthy gross profit margin of nearly 80% and has achieved revenue growth of 10.75% over the last twelve months.

Jamf’s reinvestment strategy focuses on two key areas: enhancing its go-to-market approach and accelerating AI investments. The company plans to reallocate resources toward enterprise customers, which it says deliver higher growth and stronger retention, while simplifying its approach to small and medium-sized businesses through channel partnerships and automated solutions.

The company also announced it expects to exceed the high end of its previously issued second-quarter guidance, which projected revenue between $167.5 and $169.5 million and non-GAAP operating income between $29.5 and $30.5 million. For deeper insights into Jamf’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and expert research reports, along with detailed financial metrics and industry comparisons.

"Jamf is embarking on a strategic reinvestment plan to support the continued success of the business," the company stated in its press release. The plan follows a comprehensive systems update that provided enhanced insights into growth opportunities.

The company will provide more details about the plan and its financial impact during its second-quarter earnings call scheduled for August 7, 2025. Investors can find detailed earnings forecasts and analyst price targets ranging from $14 to $27 on InvestingPro, which offers exclusive insights and real-time analysis for over 1,400 US stocks.

In other recent news, Jamf Holding Corp. reported its first-quarter earnings for 2025, which exceeded expectations, prompting an upward revision of its annual forecast. This earnings beat was driven by higher-than-expected revenue, particularly from sectors such as Healthcare, Financial Services, and Education. Following these results, JPMorgan maintained its Overweight rating with a steady price target of $15, highlighting Jamf’s prudent approach to growth and the positive impact of its recent acquisition of Identity Automation. Meanwhile, JMP Securities reaffirmed a Market Outperform rating, with a $27 price target, after Jamf secured a $400 million incremental term loan facility to enhance financial flexibility.

In addition, Jamf unveiled new AI enhancements and security tools aimed at improving Apple device management. These include the AI Assistant’s new "search skill" and "explain skill," as well as the general availability of Compliance Benchmarks in Jamf Pro. The company also announced upcoming changes to its board of directors, with Virginia Gambale and Charles Guan deciding not to stand for re-election. Their departures, confirmed to be without conflict, have sparked interest among investors regarding potential impacts on Jamf’s governance and strategic direction. These developments reflect Jamf’s ongoing efforts to strengthen its market position and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.