Olo to cut 9% of workforce, reiterated outlook

Olo on Friday morning announced a reduction of its workforce by approximately 9% “to better focus the Company’s investments and to support the Company’s long-term growth objectives.” Olo intends to reinvest some savings from the reduction in force “into future growth initiatives and will continue to hire for roles critical to those initiatives.” Olo estimates it will incur charges of approximately $2.2M to $2.6M in connection with the reduction of its workforce, which is expected to be incurred in Q3. Of the aggregate amount of charges that the company estimates it will incur in connection with the reduction of its workforce, it expects that approximately $0.2M to $0.3M related to employee benefits will be in future cash expenditures. As of September 20, Olo reiterated its Q3 and fiscal year 2024 guidance ranges for revenue and non-GAAP operating income are in line with the outlook provided by the company on July 31.