The reduction represents about 10 per cent of the
"After years of rapid growth — both organic and through acquisitions — we know our organizational structure has become too complex, with overlapping roles and a top-heavy framework," said
"This bogs us down, creates inefficiencies, distracts us from our mission and distances us from what matters most — our customers."
The deal followed the
Following the acquisitions,
"Now, we have to get back to a more streamlined model with fewer people involved in making decisions," he wrote in his letter.
"This does not mean these layoffs only impact Lightspeeders from acquired companies — it means reducing unnecessary layers of management and complexities agnostic of how or when someone joined us."
As a result, Chauvet expects half of the savings from the cuts to come from management roles and said
He expects the move to streamline the business and better prepare it for a potential economic downturn, which has already resulted in layoffs at tech companies like Shopify, Netflix, Meta and Wealthsimple.
"Dragons' Den" star
Chief executive
The bulk of the reductions were made in
Layoffs appear poised to continue in as tech valuations fall and people return to pre-pandemic habits. Job cuts aggregator Layoffs.fyi found 1,024 global tech companies laid off 154,336 employees in 2022 and two weeks into January, has already calculated another 91 companies making 24,151 cuts.
"The current economy has been a catalyst for us to streamline our business," Chauvet wrote in his note.
"With rising inflation and decreasing consumer spending affecting our customers, it’s imperative that we manage our own operating expenses efficiently during this time."
The company, he added, still intends to be profitable next year.
It estimates the cuts will result in a restructuring cash charge of
The company will release its third-quarter results on
This report by The Canadian Press was first published
Companies in this story: (TSX:LSPD)
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