Grocery delivery giant Instacart announced today that it will lay off approximately 250 employees, or approximately 7% of its global workforce, as part of a restructuring. Instacart CEO Fiji Simo said in a letter to investors that the layoffs will allow the company to streamline the way it operates. The company announced layoffs at the same time as announcing its fourth quarter results.
“Today, we made the difficult decision to part with approximately 250 talented team members,” Simo wrote. “This will allow us to restructure our company, flatten our organization, and focus on the most promising initiatives that we believe will transform our company and our industry in the long term. I am confident that we will be able to get the job done.”
Instacart also announced that three executives, including its chief technology officer and chief operating officer, are leaving the company for personal reasons.
Instacart stock was up about 3% in post-market trading.
“Our consumer products are the best they've ever been, and we're now able to invest more than ever in marketing and incentives that have the ability to not only deepen engagement with existing users, but also revive and attract new users. ” Simo wrote. “We do all this with a relentless focus on profitable growth and long-term financial goals.”
Instacart reported fourth-quarter revenue of $803 million, slightly below analysts' expectations of $804.7 million.
Instacart is one of many technology companies to cut jobs in the last month. Numerous technology companies have made large-scale layoffs in just the past two weeks, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo.
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