Instacart, the grocery delivery company has just announced laying off 250 employees, representing about 7% of it’s workforce.
This comes amidst the company’s positive growth during it’s 4th quarter, reporting a revenue growth of 6%. Aside from the firing of employees, Instacart also noted that it’s chief operating officer, chief technology officer and chief architect are also walking out voluntarily.
Instacart Employee Layoffs
The second month of 2024 is seeing a steady stream of job cuts in the tech industry, with Instacart being the latest company to announce layoffs. Revealing it’s Q4 results, the grocery delivery company said it’s cutting 250 jobs by the end of March, representing around 7% of its total staff.
This move primarily affects individuals working in middle management and those in advertising sections through platforms like Google Ads and Roku. Instacart estimates the whole layoff process will cost the company between $19 million and $24 million, by spending on factors like severance pay and employee benefits.
This comes at at time when the company recorded a 6% increase in revenue during Q4 2024, as per it’s submission to the SEC today. Instacart also noted that three of it’s executives, the chief operating officer, chief technology officer and chief architect, are walking out voluntarily.
Instacart is one of the few companies that thrived during the COVID-19 pandemic, while others suffered a lot due to shutdowns. The company home-delivered goods to millions of US consumers and expanded to 5,500 cities today. And with the growth of AI since last year, Instacart too focused on building it’s AI capabilities for better service.
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