Lightspeed to lay off 300 employees; take $12M-$14M charge
, BNN Bloomberg
LIGHTSPEED COMMERCE INC (LSPD:CT)
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Lightspeed Commerce Inc. announced it is cutting hundreds of jobs as part of a newly unveiled reorganization plan.
The Montreal-based company said in a press release on Tuesday that the changes will result in the loss of 300 positions, or 10 per cent of its workforce, with half of the cost reductions to be made in management layers. However, the company noted it will continue to hire go-to-market and development roles that support profitable growth.
Lightspeed – whose e-commerce platforms are used by restaurants, retailers and golf courses -- said the changes have come as a result of the company looking to streamline its operating model while focusing on profitable growth.
It estimates the restructuring efforts will cost $12 million to $14 million in severance payments and employee benefits, among other related costs.
"We have done outstanding work to complete our goal of integrating each brand and rolling out our flagship products to market," Lightspeed Chief Executive Officer, JP Chauvet said in a statement.
"This represents three years of hard, foundational work that is setting us up for long-term success. The launch of these flagship products, coupled with our new, leaner structure, will allow us to be more agile and responsive to our customers as we invest in innovations that will fuel our long-term growth," he said.
The charges will be reflected primality in Lightspeed’s fourth-quarter results.
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