Restaurant tech provider Olo up after announcing layoffs

Olo

20/09/2024 18:09

** Shares of restaurant technology provider Olo  OLO.N  up
3.2% at $5.34
    ** Olo to reduce its workforce by about 9%; company
discloses in a filing
        ** Company says it intends to reinvest some savings from
the job cuts into future growth initiatives and will continue to
hire for critical roles 
  
    ** Olo estimates that it will incur charges of about $2.2
mln to $2.6 mln for job cuts; expected to be incurred in Q3 FY24
    ** "We will continue focusing on driving ARPU (Average
revenue per unit) by expanding relationships within our
established base of 700+ restaurant brands" - CEO and founder
Noah Glass, in a memo to employees
    ** The headcount reduction is not overly surprising, given
that Olo's growth has somewhat slowed in recent years -
brokerage William Blair 
    ** Company had cut about 11% job roles in June last year
    ** As of Dec. 31, 2023, company had 683 employees operating
across the U.S.
    ** Up to last close, stock down ~10% YTD

 (Reporting by Jaspreet Singh in Bengaluru)
 ((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))