Olo, the online ordering and delivery software provider, has announced layoffs affecting 9% of its workforce, according to an SEC filing. The cuts, part of a broader strategy to align with long-term objectives, will help the company focus on future growth initiatives. As of December 31, Olo employed 683 people, with 85% of them working remotely.

Despite the layoffs, Olo plans to continue hiring for roles that will drive new growth. The company expects to incur costs between $2.2 million and $2.6 million due to severance payments and payroll taxes resulting from the job cuts.

CEO and founder Noah Glass explained that the decision followed careful consideration of other cost-saving measures. He emphasized the importance of maintaining accountability to all stakeholders, stating that while Olo remains profitable with a strong balance sheet, efficiency improvements are necessary to support sustainable growth.

Olo’s Q2 revenue grew by 28% year-over-year to $70.5 million, with gross profits rising 16% to $39.9 million. The company’s services are now used at approximately 82,000 locations, with notable partnerships including Bonchon, Mission BBQ, and Olo Pay integrations with brands like Culver’s, El Pollo Loco, and Pollo Tropical.