Less than a month after laying off 300 workers,
The new additions will likely begin by the end of the
Moving laid-off staff into these new roles wasn't really an option because many of the fresh positions were in different locations and roles and the swaps could be seen as demotions, he said.
"You cannot go and tell the vice-president you're going to become a contributor," he said.
"That's why it's not musical chairs."
Chauvet's staffing strategy comes exactly a year into his tenure as
Investor exuberance is fading, valuations have been slashed dramatically and even the most prominent businesses in the sector —
The sector's struggles are compounded for consumer-facing businesses like
"It's touching everyone," Chauvet said, of the economic conditions.
The realities of the industry are part of why he sees now as the ideal time to double down on
He believes the company will get there by focusing on larger, more premium clients, which can be counted on to spend more, drive sales and deliver high gross merchandise value — a metric measuring a company's total value of sales over a certain period of time.
"Not all stores are equal," he said. "You can't compare a Rolex reseller that does
Falling by the wayside in the bid for "fine dining, table service and Michelin stars" will be quick-serve restaurants and other small merchants.
If these businesses approach
These smaller businesses will still be allowed to purchase
"Historically, we would have onboarded every single customer and, and when you look at that, there's an indirect costs, especially when you look at business failure within the first year," he said.
"For small merchants, it's very, very high, and I'm not saying it's a bad business. I'm just saying it's not our business."
That decision is a reversal for
"Every time we would say, 'well, we're going to focus on profitability' and they would say, 'no, no, no, no, just double down on growing," Chauvet said.
His remarks came as
The company, which keeps its books in
Weighing on what was the third quarter was a non-cash goodwill impairment charge of
The charge stemmed from accounting rules, which require annual testing of goodwill. When
Its share price was up almost two per cent or
Revenue for the quarter ended
The company now expects an adjusted earnings before interest, taxes, depreciation and amortization loss of about
It also foresees its annual revenue to come in at the low end of its forecast for between
This report by The Canadian Press was first published
Companies in this story: (TSX:LPSD)
© 2023 The Canadian Press. All rights reserved., source