Instacart To Layoff 250 Employees As Part Of Reorganisation
Instacart, a US-based grocery delivery startup, has stated that it will lay off around 7 per cent of its global staff, or approximately 250 employees, as part of a reorganisation strategy.
The statement came as the company reported fourth-quarter earnings that were roughly in line with analyst revenue projections.
The business expects to incur non-recurring expenses ranging from $19 to $24 million as part of the restructuring plan, the majority of which will be for cash expenditures for employee transfer and severance payments, as well as employee benefits.
“The restructuring plan includes a reduction of approximately 250 employees, representing approximately 7 per cent of the company's global workforce as of January 31, 2024, with most of these reductions expected to occur by March 31, 2024," Instacart said in a filing with the US Securities and Exchange Commission (SEC).
According to Instacart, the layoffs are aimed at middle management and building a flatter organisational structure, as well as focusing teams on big projects such as Roku advertising and Google Ads, among others.
Asha Sharma, Chief Operating Officer (COO), has told the business that she will quit on 1 March 2024. The corporation has no plans to hire or designate a new COO at this time.
