Leading restaurant tech company Olo is laying off 11 percent of its workforce, or 81 people, as part of a “strategic reorganization” the company stated Wednesday.
In a message sent to employees, CEO Noah Glass said the move was “not made lightly” and came as a result of restructuring teams after acquiring data firm Wisely and the recent launch of Olo Pay.
Under the new model, the company’s current “business units” will be consolidated into three categories Order, Pay and Engage.
“The reorganization of these teams is driving the majority of the reduction in the force taking place today,” Glass wrote. Adding that the business unit cuts should not be interpreted as a reflection of work but rather “a strategic evolution that ensures we are organized around our customers’ businesses and relentlessly focused on innovating for the restaurant industry.”
Glass went on to write that the company conducted another strategic review of its organizational design to “optimize the appropriate investments in each team for the current size, output, and growth trajectory of our business”. The review resulted in a reduction of staff in the General & Administrative and Go To Market teams.
As part of the reshuffle, Olo is onboarding Joanna “Jo” Lambert as chief operating officer to lead the company’s product and engineering organizations, including the reshaped business units.
Lambert has over two decades of executive and board-level experience, previously holding executive roles at PayPal, Venmo and American Express, most recently at Yahoo.
Glass wrote Lambert’s role will be “crucial with our plans to prioritize and scale Olo Pay in the coming years.”
Let-go employees will receive three months of paid severance, plus one additional week per year of tenure, three months paid COBRA health insurance for employees and their dependents, and accelerated equity vesting through the end of the year.
“While saying goodbye to colleagues and friends is never easy, I am confident we will move forward and navigate this time in Olo’s history with resilience and emerge stronger than ever for the exciting journey ahead,” Glass wrote.
Despite layoffs, Olo has seen growth, up 22 percent year-over-year in the first quarter of 2023, generating $52.2 million in revenue. However, the company has seen a 75 percent decline in share price since going public in 2021.
