By Katherine Hamilton

Aterian said it is reducing its workforce and raising prices as tariffs and macroeconomic uncertainty drive softer consumer demand.

The Summit, N.J., company, which helps other businesses like Squatty Potty and Homelabs build e-commerce strategies, said it is reducing fixed costs, raising prices, diversifying its manufacturing footprint and expanding business in U.S.-made consumables.

"The uncertainty created by tariffs and broader macroeconomic conditions has energized our team to manage those elements of Aterian's business that are within our control," Chief Executive Arturo Rodriguez said.

As part of the cost savings plan, Aterian is reducing its workforce. Those cuts, along with vendor savings, are expected to generate $5 million to $6 million in pre-tax savings, it said.

Costs from the plan will be about $2.3 million, Aterian estimates.

The company said it has already implemented strategic pricing increases across its portfolio in response to tariffs.

Aterian established a new goal of making no more than a third of its goods in China by the end of this year. Its previous goal was to reduce Chinese manufacturing to under 40% by the second half of 2026.

Aterian has paused new product category launches that were planned to originate in Asia, specifically hard electronic goods. It said it was doubling efforts to launch a portfolio of consumable products that are tariff-exempt and made in the U.S.

The company withdrew its full-year outlook, citing uncertainty and changing market conditions. Sales fell about 24% to $15.4 million in the first quarter, while quarterly loss narrowed to $3.9 million from $5.2 million.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 14, 2025 17:10 ET (21:10 GMT)

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