American delivery company that operates a grocery delivery and pick-up service, Instacart, has announced plans to lay off about 250 employees, roughly 7% of its global workforce as part of a restructuring plan.
The company disclosed that the layoff was necessary, to enable it to focus on the most promising initiatives that will transform the company over the long term.
In a letter announcing the layoffs, Instacart CEO Fidji Simo wrote,
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“Today, we made a tough decision to part with approximately 250 of our talented team members. This will allow us to reshape the company and flatten the organization so we can focus on our most promising initiatives that will transform our company and industry over the long term. I am confident this will enable us to execute with even more focus and efficiency moving forward”.
In a SEC filing, Instacart highlighted that the layoffs will allow it to better align its organizational structure with current business needs, top strategic priorities, and key growth opportunities. The San Franscisco-based company further noted that three of its chief technology officer and chief operating officer will be departing the company for personal reasons, adding that there are no plans to appoint a new chief operating officer at this time.
The company posted fourth-quarter revenue of $803 million, roughly in line with the $804 million expected by Wall Street.
Launched in 2012 in San Francisco, Instacart is the leading grocery technology company in North America and works with grocers and retailers to transform how people shop. The company partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery, and pickup services from more than 85,000 stores across North America on the Instacart Marketplace.
Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing, and delivering orders on their own flexible schedule.
The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights.
With Instacart Ads, thousands of CPG brands, from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes.