BOSTON – Toast, the restaurant software company in Boston, announced layoffs this week that will affect hundreds of workers.
The company says its board of directors on Tuesday approved a restructuring plan to cut expenses, “including a reduction in force that is expected to impact approximately 550 employees.” It also reported a net loss of $36 million in the fourth quarter of 2023.
Toast has about 4,500 employees worldwide, and their technology is used in 106,000 restaurants. The company said it expects to lose about $45 million to $55 million in the short-term, mostly related to severance payments for employees. The layoffs would happen before July.
According to Restaurant Business magazine, Toast CEO Aran Narang said in an analyst call that “It has become clear we grew too quickly in some areas.”
Toast, which is run by MIT alumni, announced last year it would be moving its headquarters from Fenway to the Seaport. The new headquarters was expected to open at 333 Summer Street in early 2024.
Latest round of layoffs for Boston companies
Multiple Boston tech companies have announced layoffs this year. Wayfair cut 13% of its employees in January, after its CEO said the online furniture seller “went overboard in hiring.” And Uber earlier this month said it was laying off 168 employees at Boston-based Drizly after announcing it would shut down the alcohol delivery app it acquired in 2021.
Elsewhere in Massachusetts, about 350 iRobot employees are losing their jobs after Amazon called off a merger deal with Amazon.