Toast announces layoffs: 10% of workforce cut as growth slows

Toast, a restaurant management software company, announced it is laying off 550 employees, about 10% of its staff, as it reported fourth-quarter earnings that exceeded Wall Street's expectations. The company's shares initially rose by as much as 16% after hours, but then retreated. Toast's revenue grew by almost 35% year over year and its net loss narrowed from the previous year. Despite competition, transactions using Toast products are still increasing. 

The company's new job cuts are expected to result in $45 million to $55 million in charges, and $100 million in annualized savings. This development comes after Aman Narang, Toast's co-founder and COO, replaced Chris Comparato as CEO. Toast aims to report operating profit in the first half of 2025.

Financial performance

Toast's revenue grew by almost 35% year over year, and its net loss narrowed from the previous year. Despite competition, transactions using Toast products are still increasing.

The company's new job cuts are expected to result in significant charges and annualized savings. This development comes after Aman Narang replaced Chris Comparato as CEO.