Employment Law

Ritual cuts 40% of employees at Toronto food ordering app

ritual, severance pay

Samfiru Tumarkin LLP has learned that Toronto-based food ordering app Ritual laid off 38 employees on June 21, representing approximately 40 per cent of the tech company’s team. The reduction was confirmed by the company in a statement to The Canadian Press on June 23.

Ritual said the cuts were a difficult decision, but claimed that the move will benefit both the company and the restaurants they service.

The layoff follows the app’s decision back in May to start charging customers a fee to place an order on the platform. The new fee ranges from 15 cents to $1.99 per order.

Our employment lawyers are following up with affected staff to better understand the situation.

Ritual has engaged in several rounds of layoffs in recent years, including:

  • April 2020: The company fired around 190 employees, or half of its 365-strong workforce, due to the impact of COVID-19 on restaurants around the world.
  • June 2022: Almost one year ago to the day, Ritual cut 16 per cent of its staff. At the time, Reddy said in a LinkedIn post that the 23 employees were laid off to “prepare for a recession.” He added that the terminations were “difficult” but necessary as Ritual focused its resources on “fewer products and services.”
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