Restaurant management platform Toast has announced that it will cut half off its staff due to the economic impact of COVID-19. The company will make the move through layoffs and furloughs. For a company valued at $5 billion, this move is a striking blow.
“This morning at Toast we shared the agonizing decision to reduce the size of our company by roughly 50 percent through layoffs and furloughs as a result of the COVID-19 health crisis. I will do my best to explain how we got here, but first, I want to reinforce how grateful we are to our impacted Toaster,” Toast CEO Chris Comparato wrote in a blog post.
“This incredibly talented and passionate bunch played an important role in building Toast into the company that it is today. We cannot begin to thank them enough for their contributions, but to start, we offered all impacted employees a severance package, benefits coverage, mental health support, and an extended window during which they can purchase vested stock options,” he added.
It is no secret that the restaurant industry has been greatly impacted by the pandemic. With many restaurants forced to close seated dining options, revenue is down across the board. Restaurants across the country have closed down indefinitely and may never open their doors again.
