This popular tech company is now laying off 550 employees, or about 10% of its headcount, despite rising revenue.
Toast, the payments company that caters to restaurants, has begun cutting 550 employees, about 10% of its headcount, after rapid expansion that proved unsustainable despite rising revenue, reports Restaurant Dive.
“We’ve made the difficult, but right, decision to reduce our headcount by 10%,” Toast CEO Aman Narang told analysts on a call Thursday to discuss the company’s fourth-quarter earnings results.
“As you know, Toast grew rapidly over the past few years to support a growing customer community.
As I’ve taken a look across the organization, it has become clear that we grew our team too quickly in some areas, and we need to restructure the organization to best align with our most important priorities.”
Narang, a co-founder who took the top post in January after Chris Comparato stepped down last year, said that the eliminated jobs were primarily those that were not customer-facing.
The company expects to complete its cost-cutting plan by the end of the year, according to the Thursday earnings release.
Despite the company’s growth, it’s still unprofitable, on a GAAP basis.
Nonetheless, Toast’s gross profit and revenue is climbing.
Fourth-quarter gross profit jumped 43% to $226 million, from $158 million in the year-ago quarter, according to the release.
Revenue for the fourth quarter rose 35% to $1.04 billion.
As of the end of last year, Toast had a presence in 106,000 mainly U.S. restaurant locations, up about 7% from 99,000 at the end of the third quarter.
For the moment, though, Toast will absorb restructuring charges of as much as $55 million in the current quarter mainly for employee severance expenses, according to the release.
For more news and updates like this, opt-in for push notifications.
Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A grocery store with 217 locations now closes for good, a move by its parent company which has left the community disappointed.
Foodland in Little Britain, Ontario — about 110 miles northeast of Toronto— announced on its Facebook on January 23 that the store would close on Saturday, March 16.
“Unfortunately, we’ve had to make a difficult decision to close the Foodland in Little Britain.
The decision to close a store is never one we make lightly, and various contributing factors are considered,” Sarah Dawson, public affairs lead for Sobeys, told kawarthaNOW.
The post stated that Sobeys, the parent company, decided not to renew its lease with the property owner.
Dawson told the outlet that Sobeys expressed its gratitude to the Little Britain community for its “loyal patronage over the years.”
The Facebook post stated, “I have seen a lot of changes over the years. Lots of people have come and gone but this is by far the saddest news for our amazing community in a long time.”
The post has 359 shares and 57 comments from members of the community.
“Reading this makes us sad. The 23 years we spent in the store and being involved and engaged in the whole community were the best working and fun times of our life,” wrote one saddened user.
“Let’s hope there is a plan in place that we are unaware of that makes life somewhat normal for all involved.”
“We have very much appreciated this community store and their quality meat selections at reasonable prices. So sad to hear this news,” said a customer.
“We shopped there for years. Really enjoyed the store and the people,” said another shopper.
“That store has been the anchor for our community. It will be missed terribly,” a user remarked.
For more news and updates like this, opt-in for push notifications.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.