Six months after layoffs at food technology company City Storage Systems, new layoffs have hit teams around the world, according to leaked audio obtained by Business Insider.
More than 80 U.S. employees have been cut at Otter, the company's restaurant technology division, according to a source familiar with the layoffs. Layoffs also affected teams in regions such as Canada and Latin America.
According to audio obtained by Business Insider, Otter chief Guido Gabrieli told staff during an all-hands meeting on Thursday that the company was cutting jobs because Otter was “trying to become profitable as quickly as possible.” He said leaders would “do their best” to avoid future layoffs.
The total number of staff affected was not immediately known. CSS has about 3,300 employees, down from about 4,300 in November, before the last big layoff.
A CSS representative did not immediately respond to a request for comment outside of normal business hours.
In fall 2021, CEO Travis Kalanick raised $850 million for CSS from investors including Microsoft at a valuation of $15 billion. Since then, the company has faced headwinds similar to those in other tech and real estate industries, including higher interest rates and slower growth in customer demand than during the pandemic boom.
Kalanick wants to reinvent the food business through CSS. Just like he founded and transformed transportation. Uber. Another big unit of CSS is cloud kitchenis converting warehouses to provide ghost kitchen facilities for mom-and-pop restaurateurs and large corporations like Chick-fil-A.
CSS's chief financial officer resigned in January, BI previously reported.
Otters are still growing
At Thursday's all-hands meeting, Gabrieli said the company has achieved $80 million in annual recurring revenue, with 100,000 restaurants paying for at least one service.
“Growth is not as common today, both in the SaaS world and in the technology world, but we still have it,” Gabrieli said.
Otter's business includes order management for platforms such as DoorDash. Virtual menu arm. A revenue collection business that recovers money owed to restaurants. And a new POS system.
Gabrieli said Otter has about 500 McDonald's customers for its revenue collection business. The product faces increased competition and slower growth, he said.
Otter's POS system has been “excellent” for its small size, generating approximately $500,000 in annual revenue.
Gabrieli said Otter leaders are also talking to technology companies looking to raise money. He said some companies that hit $1 billion valuations two years ago, when interest rates were at zero and investor enthusiasm was at its peak, are now suffering from a year of no growth. Ta.
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