As part of a change, grocery delivery giant Instacart said today that it is letting go of about 250 workers, which is about 7% of its global workforce. In a letter to investors, Fidji Simo, CEO of Instacart, said that the layoffs would help the business run more efficiently. The company revealed the layoffs at the same time it reported its earnings for the fourth quarter.
In the letter, Simo said, “Today, we had to make the hard choice to let go of about 250 talented team members.” “This will let us reshape the company and make the organisation flatter so we can focus on our most promising projects that we think will change our business and the industry in the long run.” I’m sure this will help us work even more efficiently and with more focus in the future.
In a filing with the SEC, Instacart said that the layoffs will help the company’s structure better fit its “business needs, top strategic priorities, and key growth opportunities.” A report with the government shows that the company had 3,486 workers as of June 30, 2023.
It was also reported that three executives will be leaving the company for personal reasons. These include the chief technology officer, the chief operating officer, and the chief technology officer. The business stated that it has no plans to seek out or hire a new COO “at this time.”
Analysts had predicted that Instacart would make $804.7 million in sales for the fourth quarter, but the company only made $803 million.
Following the market close, shares of Instacart are up around 3%.
Simo wrote, “Our consumer product is the best it has ever been, which lets us spend more than ever on marketing and incentives that can bring back and attract new users as well as deepen engagement with existing users.” “We are doing all of this while keeping our unwavering focus on our long-term financial goals and profitable growth.”
Also Read: A Message From Sundar Pichai to the Google Staff: More Layoffs Are Coming
Instacart is one of many tech companies that have let people go in the last month. In the past two weeks, a lot of tech companies have let go of a lot of workers. These include Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo.
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