2024-04-03 18:36:11
Lightspeed Commerce is cutting nearly 280 jobs, less than two months following its founder returned to the helm of the Montreal technology company.
Lightspeed founder and CEO Dax Dasilva, who took over the helm of the company in February, says the company is “now entering a phase focused on operational efficiency and profitable growth.”
“We must therefore make difficult decisions such as reducing expenditure on staffing levels in order to allow investments in other sectors,” he wrote in a press release. We go through this obligatory passage with recognition of the invaluable contribution of each member of the team throughout our journey. »
The cloud commerce specialist explains that these job cuts represent nearly 10% of its workforce-related operating expenses.
These cuts are part of a broader effort to save money. The Montreal company says in particular that it has undertaken several other cost reduction initiatives in its facilities and operations.
Lightspeed expects that the majority of restructuring costs will be incurred during the first quarter of fiscal 2025, which has just begun, and that the implementation of its restructuring plan will be largely completed by the end of the same period. quarter, which is due to end on June 30.
The company also announced that its board of directors has authorized the repurchase of up to 10% of its publicly issued shares, representing an amount of approximately US$140 million.
The head of financial services at Lightspeed, Asha Bakshani, emphasizes that this transaction will create value for shareholders and reduce dilution attributable to the employee stock ownership plan.
The company added on Wednesday that it still expects revenue of between US$895 million and US$905 million for its 2024 financial year, which ended March 31, as well as earnings before interest, taxes and balanced or positive depreciation. It will provide an update on this subject when it discloses its fourth quarter results in May.
National Bank Financial analyst Richard Tse views the measures announced Wednesday favorably.
“Investor appetite is moving more towards more balanced growth [rentable]we believe this move should allay concerns that the company is returning to aggressive investing and might potentially return to its old acquisition path,” he wrote.
However, Mr Tse added that it was too early to say whether the company’s focus on larger customers would prove effective “beyond the current push towards payments”, and maintained his course target at US$20, on the stock which is also listed on the American Stock Exchange.
Lightspeed shares were up more than 5% in late morning trading on the Toronto Stock Exchange, to $19.86.
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