There's little joy in today's price pop at Jones Soda
The edgy soft drink bottler certainly didn't seem like it would be retreating early last year. That was when it struck a deal with National Beverage
Jones Soda was supposed to be the next Hansen Natural
Last night's 8-K filing indicates that lowering its headcount to just 68 hires will be enough to shave $2.6 million in operating expenses. For a company that is at least two years away from a return to profitability, that's a healthy chunk of change to get there faster.
The key in any restructuring, of course, is if the company can remain productive with fewer people. Where will Jones Soda take the hit? Is it going to lose some of its innovative flavor creations? Will newer products like its 24c vitamin drink mixes or the rollout of its focus-enhancing Jones Gaba energy drink suffer?
If Jones Soda can keep its products humming along with a tighter cost structure, patient investors will be rewarded. The key word there is patient. By slashing its workforce so dramatically -- far more than the 10% layoff announced yesterday at outdoor gear superstore chain Cabela's
Then again, shares of Jones Soda have been stung so badly since hitting all-time highs last year that a lot of the negativity is already priced into the shares. The layoffs actually mean that Jones Soda isn't going to go down without a fight, and that'll do as a share price catalyst these days.
Other refreshing sips:
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Longtime Fool contributor Rick Munarriz actually enjoys some of the more exotic Jones Soda seasonal flavors like caramel apple and key lime pie. He does own shares of Jones Soda. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.