Montréal-based e-commerce and point-of-sale giant Lightspeed Commerce is laying off approximately 200 employees in its second restructuring effort this year.
The cuts were made as Lightspeed looks to execute on its profitable growth strategy and “prioritize resources for strategic areas of the business,” the company said in a statement. Following the layoffs, Lightspeed is actively hiring in its product and technology teams, as well as specific go-to-market roles, a spokesperson told BetaKit in an email statement.
Gus Papageorgiou, Lightspeed’s head of investor relations, told BetaKit that Lightspeed will be focusing on retail in North America, which includes its Golf and NuOrder platforms, and hospitality in Europe. Papageorgiou added that any department impacted by the layoffs was outside of those two areas.
“Lightspeed is focused on growing where we have the strongest product-market fit and right-to-win, particularly in North American retail and [Europe, the Middle East, and Africa] hospitality,” Lightspeed CEO Dax Dasilva said in a statement. “Today’s announcement reaffirms our commitment to building an organization that can fulfill its true potential.”
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As of March 31, 2024, Lightspeed had approximately 3,000 employees, meaning these layoffs will impact about seven percent of the company. Lightspeed said the majority of the cuts will be completed within the fiscal quarter, which ends on Dec. 31, 2024.
Founded back in 2005, Lightspeed sells point-of-sale and commerce software and hardware to restaurants, retailers, and hospitality providers. The company is dual-listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) under the symbol LSPD.
This year, Lightspeed has vowed to focus on growing its top-line revenue without sacrificing the progress it has made in becoming earnings before income, taxes, depreciation, and amortization (EBITDA)-positive, as the company aims to strike the right balance between revenue growth and profitability to woo investors.
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The company already laid off 280 employees and initiated a stock buyback earlier this year as part of Dasilva’s first moves following his return to the CEO job.
This second restructuring occurs amidst a strategic review of Lightspeed’s business and operations, which was conducted with an eye toward a possible sale of the business. The review has already led to Lightspeed postponing its Capital Markets Day—which would have given investors a look into its strategy, performance, and plans— last month. Lightspeed said the reorganization does not affect, or inhibit, the ongoing strategic review process.
Lightspeed’s cuts come only a few days after The Canadian Press reported that Toronto-based online brokerage firm Questrade had laid off an undisclosed number of employees. In an email statement to BetaKit, a Questrade spokesperson confirmed that the company reduced some of its workforce, but declined to disclose any details. The spokesperson added that the changes are intended to “better align with the strategic direction of the business going into 2025 and beyond.”
Feature image courtesy Lightspeed.