Company: GROVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001841761-25-000048
Chunk: 323

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 323
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 offices, our remote workforce and distribution centers. Such events may in the future slow or temporarily halt our operations and harm our business, results of operations and financial condition.

We are dependent on our management team, and the loss of one or more key employees or groups could harm our business and prevent us from implementing our business plan in a timely manner.

Our success depends substantially upon the continued services of our executive officers and other key members of management, particularly our Chief Executive Officer. From time to time, there may be changes relating to our executive management team and key employees resulting from the departure of executives and key employees and the hiring of new executives and key employees. For example, the employment of our Chief Financial Officer and Chief Technology Officer recently terminated and our board of directors recently appointed an interim Chief Financial Officer who became our Chief Financial Officer in October 2025. We also implemented a reduction in force that resulted in the loss of executives and key employees.  Such changes may be disruptive to our business. We do not have employment agreements with any of our executive officers or key personnel and, therefore, they could terminate their employment with us at any time. We do not maintain key person life insurance policies on any of our employees. The loss of one or more of our key employees or groups could seriously harm our business.

Our corporate cost-cutting initiatives and headcount reductions could disrupt our business and may not achieve our objectives.

We have undertaken several cost-saving initiatives over the past two years, including most recently a reduction in our corporate workforce of approximately 30% in November 2025 to reduce our sales, general and administrative expenses. The cost-saving initiatives we have taken are intended to decrease expenses and to help us conserve cash. Our cost-saving initiatives may be disruptive to our operations and there is no guarantee that they will achieve the intended benefits. For example, our headcount reductions could result in negative consequences and costs, such as increased difficulties in implementing our business strategy due to the loss of expertise and institutional knowledge, attrition beyond the intended number of employees, and decreased morale among our remaining employees. We may also be unsuccessful in distributing to remaining employees duties and obligations of departing employees that are still important to our business. The reduction in workforce could also make it difficult for us to pursue, or prevent us from pursuing, new opportunities and initiatives or require us to incur additional and unanticipated costs to hire new personnel to pursue such opportunities or initiatives. Moreover, any employee litigation related to the headcount reductions could be costly and prevent management from fully concentrating on the business. In