Instacart lays off 250 employees, or 7% of its workforce, to “reshape” the company

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Instacart, the grocery delivery giant announcement today it is laying off about 250 employees, or about 7% of its global workforce, as part of a restructuring. Instacart CEO Fidji Simo said in a letter to investors that the layoffs will allow the company to streamline its operations. The company announced the layoffs alongside the release of its fourth-quarter results.

“Today we made the difficult decision to part ways with approximately 250 talented members of our team,” Simo wrote in the letter. “This will allow us to reshape the business and flatten the organization so we can focus on our most promising initiatives that we believe will transform our business and our industry for the long term.” I am convinced that this will enable us to act with even greater focus and efficiency in the future. »

In an SEC filing, Instacart said the layoffs will allow it to better align its organizational structure with “current business needs, key strategic priorities and key growth opportunities.” The company had a total of 3,486 employees as of June 30, 2023, according to a regulatory filing.

Instacart also announced that three of its executives, including its chief technology officer and chief operating officer, would be leaving the company for personal reasons. The company said it does not plan to hire or appoint a new chief operating officer “at this time.”

Instacart reported revenue of $803 million for its fourth quarter, down slightly from analysts’ estimate of $804.7 million.

Instacart shares are up about 3% in after-market trading.

“Our consumer product is the best it has ever been, allowing us to invest more than ever in marketing and incentives that have the ability to resurrect and attract new users as well as deepen the “engagement with existing users,” Simo wrote. “We do all of this while maintaining our consistent focus on profitable growth and our long-term financial goals.”

Instacart is one of several tech companies to make layoffs in the past month. Many technology companies, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Tic And Duolingo have all made significant layoffs in just the last two weeks.

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