Olo, a leading digital food ordering platform, has recently announced organizational changes aimed at driving sustainable, profitable growth. The company has made the difficult decision to reduce its team by approximately 9% as part of its efforts to align costs with the current pace of profitable growth.
Despite the reduction in workforce, Olo remains strong, growing, profitable, and boasts a solid balance sheet. The company is focused on driving Average Revenue per Unit (ARPU) by expanding relationships within its established base of 700+ restaurant brands, which has historically been a significant and efficient growth driver for Olo.
In addition to focusing on ARPU growth, Olo plans to maintain a steady pace of location growth in line with historical levels. The company also aims to execute a more streamlined vision for product innovation, building upon its current solutions and delivering the reliable, open platform it is known for.
As part of the organizational changes, Olo has provided departing team members with a comprehensive package, including paid severance, company-paid COBRA health insurance, Olo-provided equipment, and LinkedIn Premium services. The company is committed to supporting its employees through this challenging transition.
Olo's Founder & CEO, Noah Glass, acknowledges the difficulty of the changes but emphasizes that balancing growth-to-expense profile and sharpening focus will make the company more capable of achieving success in the future. The company remains dedicated to its mission of sustaining purpose for its team and supporting its customers to achieve long-term success through Hospitality at Scale™ solutions.
While the announcement reflects a challenging period for Olo and its employees, it underscores the company's commitment to adapting to market conditions and driving sustainable growth for the benefit of all stakeholders. The market has reacted to these announcements by moving the company's shares 2.5% to a price of $5.3. Check out the company's full 8-K submission here.
