Smith Micro raises $4.9M through convertible note offering

Smith Micro to cut 30% of workforce amid restructuring and leadership changes. Power Moves is a recurring series where we chart the comings and goings of talent across the region. Got a new hire, gig or promotion? Email us at [email protected]. Pittsburgh's tech scene recognized its top leaders this month, but layoffs also hit one of the region's standout firms. Smith Micro announced significant workforce cuts in an effort to boost profitability, as the Pittsburgh Technology Council honored the region's top tech companies and leaders at its annual Tech 50 Awards. Read on for more on these leadership changes, industry shakeups and standout wins. Smith Micro announces layoffs. Smith Micro, a North Hills-based software company, announced last month it would be making workforce reductions, impacting about 30% of its staff. The company claimed these workforce reductions would save $7.2 million in costs during 2026 and "position [it] for profitability." The move comes after the company lost a contract with Verizon in 2023, cutting its revenue in half the following year. However, revenue remains steady this year and the company recently raised $1.5 million in new funding, according to a filing with the US Securities and Exchange Commission. As part of the reorganization, the company also announced three major leadership changes. * David Blakeney, senior vice president of engineering, retired after 14 years with the firm. * David Sperl was promoted to chief technology officer and senior vice president of engineering, and will now additionally be responsible for all development activities. * Anup Kaneri, vice president of worldwide products, was promoted to chief product officer and is responsible for all product strategies. "We recognize the impact this decision has on our employees and their families, and we appreciate their contributions and long-standing service and dedication to the company," William Smith Jr., president, CEO and chairman of the board, said. "While difficult, this strategic realignment of resources is a meaningful step forward and is necessary for the company's success." Technology Council recognizes local startups. The Pittsburgh Technology Council held its 29th annual Tech 50 Awards this month, celebrating standout companies and leaders across the region's tech ecosystem. In the startup category, Thoro.ai - which builds software for autonomous cleaning equipment and forklifts - took the top spot, beating out five other local contenders. KEF Robotics, a company developing software for autonomous aircraft, won the award for the AI/ML/robotics category. Local IT consulting firm solutions4networks also had a strong showing, earning multiple honors, including solutions provider - services, company culture and CEO of the year for Michele McGough. Pittsburgh's tech landscape," Tech Council President and CEO Audrey Russo said, "creating a dynamic network where collaboration propels innovation forward." * Fintech: Gift-giving platform PerfectGift.com * Manufacturing: Eos Energy Storage * Medtech/health IT: Mental health platform Moodr Health * Solutions provider - innovative tech: Renewable energy project developer Exus Renewables North America More power moves: * Gather AI, a local startup designing software for warehouse operations, hired Joseph Mirabile as its new vice president of operations. * Local software company Confluence Technologies appointed Bryan Woodard as its chief legal officer, bringing more than two decades of legal and regulatory leadership in the financial services sector. * Sally Guzik was named president of Pittsburgh-based Fourth Economy, an economic and community development consulting firm. * California-based firm Synopsys announced it would cut 10% of its workforce soon after it acquired local simulation software company Ansys for $35 billion. * Pittsburgh Post-Gazette journalists returned to work on Monday after three years on strike. * The United Steelworkers union elected Roxanne Brown as its next president in a unionwide vote. Brown is the first Black woman to hold the position. * Duquesne University announced Provost David Dausey will be its 14th president. * Carnegie Mellon University (CMU) named Burcu Akinci as its new dean of the College of Engineering, meaning she'll be the first woman in the role. Akinci previously led CMU's Department of Civil and Environmental Engineering. * Chatham University appointed long-time faculty member Lisa Lambert as its 21st president.

Smith Micro Software announced two financing agreements totaling $2.65 million. CEO Bill Smith will invest $1.5 million in a private placement, while a registered offering with investors will raise $1.15 million. Shares are priced at $0.6708 each, with warrants exercisable at the same price. Proceeds will be used for working capital and corporate purposes. The transactions are expected to close on November 6, 2025, subject to conditions.