Toronto has, in recent years, been considered home to one of the world's most flourishing tech scenes, but layoffs at companies with once-strong Toronto presences like Shopify, Twitter, Properly, Clearco, Koho Financial and others has stakeholders murmering about a tech downturn in the country at large.

Another firm has now added its name to the list of those slashing jobs: Ritual, the popular meal pick-up app actually founded in the city in 2014 and headquartered near Adelaide and Peter Streets.

Tech companies in Ontario are laying off tons of workers and they're not done yet https://t.co/eIFdm6LmuP #Ontario #Tech

— blogTO (@blogTO) December 3, 2022

The app gained traction at local cafes and restaurants, especially those catering to office workers looking to grab a quick coffee or lunch in the downtown core.

But after years of rapid expansion, including overseas, it was forced to cut its workforce in half in 2020 due to the "sudden and devastating impact on the restaurant industry, which has in turn impacted our business."

After another, much smaller round of layoffs in June 2022 to "prepare for a recession," the service has just announced more dismissals, reducing its workforce by 40 per cent — which now only amounts to about 38 staff, though Ritual once had over 300 — last week.

Ritual user fees, and now layoffs... (lack of in-office workers being at least part of it) pic.twitter.com/Yz3y4UzYfW

— Frederick Moesker (@fredmoesker) June 24, 2023

"While difficult, this decision strengthens our company and positions it for success as we continue to support thousands of restaurants worldwide to better service their customers and grow their businesses," execs told the Globe & Mail about the move.

"Our entire team in Toronto, a city we proudly call home, and around the country remains committed to delivering on that vision."

Ritual is known for helping promote local establishments by providing users with special deals on spots in their area, as well as the ability to skip the line, gain points and get access to exclusive perks.