ASAP, the food delivery company formerly known as Waitr, will lay off 89 people in January, according to a WARN notice filed with the Louisiana Workforce Commission.
The notice filed earlier this month stated the employees would be laid off on January 10 from its downtown Lafayette office.
The layoffs come after ASAP reported a loss of $73.5 million in the third quarter of 2022.
The company, founded in 2013 and based in Lafayette, has recorded four consecutive quarters with a net loss, and it is a few months away from its deadline to raise its stock price above $1 to avoid losing its NASDAQ listing.
“We have focused our efforts on certain initiatives to improve our cash position, including our comprehensive rebranding, consolidation of our technology platforms into a single application and cost reduction where appropriate,” said Waitr Holdings CEO Carl Grimstad on the company’s earnings call earlier this month.
Waitr, or ASAP, had long been one of the largest employers in Lafayette Parish, though it is no longer in the top 50 as of September 2022, according to the Lafayette Economic Development Authority. It’s also been one of the businesses that economists like Loren Scott have said would determine the region’s economic success in recent years.
In the third quarter, the company’s revenue was around $25.1 million – a decline of 42.2% from $43.4 million in the third quarter of 2021. In a press release, the company said the drop in revenue came from fewer orders as a result of the “highly competitive environment of the delivery business.”
Waitr, which began its rebrand as ASAP in August after settling a lawsuit with Waiter.com, has had difficulty staying profitable since the U.S. began coming out of the COVID-19 pandemic. The company was struggling prior to the pandemic, but it saw a resurgence during the pandemic as restaurants pivoted to delivery and pickup.
ASAP has until January 23 to maintain its share price at or above $1 to avoid being delisted from the NASDAQ exchange. The company is undertaking something of a last-ditch effort to raise its price later this month, but it’s unclear how effective it will be.
The company’s share price has largely been below $1 for much of the year. The price was $0.12 per share when the market opened on Friday.
The company’s shareholders approved a reverse stock split this month, and the board is expected to consolidate its existing shares at a 20-1 ratio. The split is expected to take place by Nov. 21 at the latest.
The company’s leadership advocated for the reverse split as one of the only options to meet the January 23 deadline.