US hospitality fintech Toast to cut 550 jobs as part of restructuring plan
Toast, a US-based fintech providing point of sale (POS) software and hardware for the hospitality industry, is set to cut approximately 550 jobs as part of a restructuring plan after it posted a $246 million net loss for the full year 2023 in its latest financial results.
US hospitality fintech Toast to cut 550 jobs
The fintech, which was founded in 2011 and is headquartered in Boston, says the plan will also extend to “certain other actions to reorganize the company’s facilities and operations”, and is due for completion by the end of the 2024 fiscal year.
It forecasts that the restructuring will incur charges of between $45 million and $55 million this quarter, primarily attributed to “severance and severance-related costs and certain other costs related to facilities”.
The fintech says the plan, which was approved by its board of directors this month, is intended to “promote overall operating expense efficiency”.
Despite the significant net loss filed for 2023, the figure does mark an improvement on the $275 million net loss it posted the year prior. Adjusted EBITDA was measured at $61 million for 2023, in comparison to the adjusted EBITDA of $115 million measured in 2022.
The firm’s financial results also reveal that Toast generated revenue of $3.9 billion in 2023, up 42% on the previous year. It secured gross profit of $1 billion through its subscription services and fintech solutions, a 48% increase on year-on-year figures.
Toast projects its subscription services and fintech solutions to produce a non-GAAP gross profit of between $275 million and $285 million in Q1 2024, with an adjusted EBITDA of between $15 million and $25 million.
On a wider level, it hopes its full year 2024 results will measure a non-GAAP gross profit of between $1.3 billion and $1.32 billion, in parallel with an adjusted EBITDA of $200 million to $220 million.
Toast has become the latest fintech to action job cuts, following in the footsteps of companies including Block, PayPal and Brex, all of which have announced similar moves this year.
