Boston, Massachusetts-based Toast, a cloud-based restaurant management software company providing an all-in-one point-of-sale system built on the Android operating system, has announced a restructuring intended to lower operating costs and a ten percent reduction in its workforce amid slowing demand for Toast’s tools for mobile ordering and payments.
The reduction in force will impact 550 employees.
Co-founder and CEO Aman Narang noted, "Our decisive actions to streamline operations and focus on core growth areas are reflected in our strong financial performance and the positive response from the market. We are committed to executing our restructuring plan efficiently to position Toast for long-term success."
According to an SEC filing, "On February 13, 2024, Toast’s Board of Directors approved a restructuring plan designed to promote overall operating expense efficiency, including a reduction in force that is expected to impact approximately 550 employees, as well as certain other actions to reorganize the Company’s facilities and operations. The Company expects to complete the Plan by the end of fiscal year 2024. As part of this Plan, the Company expects to incur restructuring and restructuring-related charges of approximately $45 to $55 million, primarily related to severance and severance-related costs and certain other costs related to facilities. Substantially all of these charges are expected to be incurred in the first quarter of fiscal year 2024.
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