Tech

Instacart Lays Off 250 Employees To ‘Reshape’ The Company

Published

2 months ago

February 15, 2024

(CTN News) – During a restructuring at grocery delivery giant Instacart, 250 employees will be laid off, or approximately 7% of its global workforce.

Fidji Simo, CEO of Instacart, wrote in a letter to investors that the layoffs will allow the company to streamline its operations. As part of the release of the company’s fourth-quarter earnings, the company announced the layoffs.

Simo wrote in the letter that “today, we made the difficult decision to part ways with approximately 250 of our talented team members.”

As a result, we will be able to reshape the organization and flatten it so that we can focus our efforts on the most promising initiatives that are expected to have a long-term impact on the organization and the industry.

As a result, I am confident that we will be able to execute with greater focus and efficiency in the future.”

As of June 30, 2023, the company employed 3,486 people. Through the layoffs, the company will be able to better align its organizational structure with its current “business needs, top strategic priorities, and key growth opportunities.”

Additionally, Instacart announced that three of its executives, including its chief technology officer and chief operating officer, will be departing from the company for personal reasons. As of right now, the company does not intend to hire or appoint a new chief operating officer.

As of the end of its fourth quarter, Instacart reported revenues of $803 million, a slight decline from analysts’ expectations of $804.7 million.

During after-market trading, shares of Instacart are up approximately 3%.

Simo stated that “our consumer product is at its best ever, enabling us to invest more in marketing and incentives designed to resurrect and attract new users and to deepen engagement with existing ones.” In addition to maintaining our relentless focus on profitable growth, we are meeting our long-term financial objectives.

As part of the recent layoffs in the technology industry, Instacart has been one of many companies to do so. Within the past two weeks, a number of technology companies, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo, have conducted significant layoffs.