Waitr announced this afternoon it will be closing a subset of low-performing markets as well as laying off an undisclosed number of employees as part of a restructuring designed to remain competitive in the industry.
Waitr spokesman Dean Turcol told Daily Report that the market closures will be based on a growth and profitability analysis currently underway, with closures expected to occur over the next 30 days. No Louisiana markets, he says, will be impacted.
Regarding layoffs, Turcol says he can’t disclose how many employees will be let go until after the release of the company’s third-quarter financial results on Thursday.
“Employees being laid off have been informed or (are) currently being informed,” he says, adding the company is providing separation packages for impacted employees. “Today is the last day for some, while others will stay on for a transition period.”
“Eliminating jobs is the last thing a business ever wants to have to do,” says Waitr CEO Adam Price in a prepared statement. “Actions taken this week were done to best position Waitr for the future and enable the company to continue providing a consistent, reliable experience to our customers, and valuable relationships to our restaurant partners.”
The third-quarter earnings results will be reported on the heels of a shaky year for the company. In May, Waitr announced with its first-quarter earnings results that the company was “increasingly confident” it would exceed its initial revenue guidance of $250 million for 2019. In August, the company backtracked, lowering its full-year revenue guidance to a range of $210 to $220 million with its second-quarter results.
Additionally, with the release of Q2 earnings, the company announced the resignation of founder Chris Meaux as CEO, replacing him with Adam Price, then chief operating officer and a former Bite Squad executive. The company’s president Joseph Stough stepped down a month later. Early last month, two members of Waitr’s board of directors and Chief Financial Officer Jeff Yurecko resigned, leaving the company out of compliance for its NASDAQ listing. Following the last three resignations, which occurred days within each other, the company’s stock dropped below $1, further threatening its status on the stock exchange.
