Lightspeed Commerce cutting 200 jobs as it eyes profitable growth

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This article was published 02/12/2024 (372 days ago), so information in it may no longer be current.

Lightspeed Commerce Inc. is slashing jobs for the second time in a year as it continues a strategic review.

The latest cut announced Monday culls about 200 jobs from the Montreal-based company known for selling point-of-sale software.

The company positioned the layoffs as part of “a strategic reorganization” meant to set it up for further growth and unlock savings.

“Since I returned as CEO, Lightspeed has been working harder to deliver on our profitable growth strategy,” a statement from Dax Dasilva, Lightspeed’s co-founder and chief executive who returned to the company’s top job in February, said.

“Today’s announcement reaffirms our commitment to building an organization that can fulfil its true potential.”

Savings from the job cuts will be diverted to other areas of Lightspeed’s business, said spokesperson Ryan Tessier in an email to The Canadian Press.

Those areas will likely be the company’s “higher capital efficient growth segments” like North American retail and European hospitality, National Bank analyst Richard Tse hypothesized in a note to investors.

Though the company cut staff, Tessier said, “wherever possible, we have shifted roles and responsibilities to minimize disruption.” In fact, Lightspeed is currently hiring in the product and technology area of its business and for “go-to-market” roles, which help the company expand its reach.

Lightspeed has been working to refocus the company since at least September, when media reports claimed it was exploring a possible sale. Lightspeed eventually admitted it is conducting a review of its operations designed to help it with “realizing its full potential.”

It said that Monday’s cut “does not affect, or inhibit, the ongoing strategic review process.”

Dasilva has said that review has “no presupposed outcome” and he’s “open to every option,” whether that be remaining a standalone company or otherwise.

“All I can say is that it’s business as usual at Lightspeed,” he told The Canadian Press last month.

But since Dasilva returned to the company, it’s been clear change is in the air.

Under his leadership, Lightspeed cut roughly 280 jobs in April, which represented about eight per cent of its workforce.

The company also shifted its sales summit from an in-person format to a virtual event, reduced how many days staff work from the company’s offices in order to decrease bills associated with feeding employees and promised to accelerate software revenue growth and advance the adoption of Lightspeed’s financial services products.

“In our view, we see a balanced risk-to-reward profile in Lightspeed,” analyst Tse said.

Lightspeed expects that the majority of the restructuring charges as a result of Monday’s move will be incurred in the third quarter of its 2025 financial year.

It also reaffirmed its revenue and adjusted EBITDA financial outlook it released Nov. 7.

The news pushed Lightspeed’s shares down more than eight per cent, or $2.16, to $24.09 on Monday.

This report by The Canadian Press was first published Dec. 2, 2024.

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