Online ordering provider Olo is laying off 9% of its staff to cut costs and set the company up for long-term growth.
CEO and founder Noah Glass informed employees of the layoffs in a letter Friday. “Although Olo’s business remains strong—we are growing, profitable, and have a strong balance sheet—we need to drive efficiencies and align our costs with the current pace of profitable growth,” he wrote.
At the end of last year, Olo had 683 employees, according to an SEC filing.
The layoffs will cost Olo an estimated $2.2 million to $2.6 million in severance payments, benefits and payroll taxes. The company said it would reinvest some of the labor savings into future growth initiatives.
Glass added that the company considered other cost-cutting alternatives, but determined that layoffs were the most effective solution.
The layoffs come just over a year after New York-based Olo cut 11% of its staff, or about 81 people, as part of a reorganization.
“Today is challenging because saying goodbye to colleagues and friends is never easy,” Glass wrote. “However, by balancing our growth-to-expense profile and sharpening our focus, we will be even more capable of achieving success on the journey ahead.”
Olo provides online ordering, marketing, payments and other technology for restaurant chains. It has grown quickly since going public in 2021 and now works with more than 700 brands. In its most recent quarter, total revenue increased 28% to more than $70 million, and it posted its first operating profit as a public company.
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