Worldwide grocery-delivery service, Instacart, is undergoing a significant restructuring that includes the layoff of 250 employees, constituting 7% of its global workforce.
In a communication to investors, Instacart CEO Fidji Simo explained that these layoffs are part of an effort to streamline the company’s operations.
“Today, we made the 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 the most promising initiatives that we believe will transform our company and industry over the long term,” he said.
Instacart has revealed plans for significant layoffs, impacting a considerable number of its workforce. Additionally, the company announced the departure of three key executives, including the Chief Technology Officer and Chief Operating Officer, citing personal reasons.
The decision for workforce reduction, as stated in an SEC filing, is aimed at aligning the organizational structure with current business needs, strategic priorities, and growth opportunities. As of June 30, 2023, Instacart employed 3,486 individuals, as reported in regulatory filings.
This move by Instacart adds to the recent wave of layoffs across the tech industry. Just a fortnight ago, Microsoft unveiled plans to lay off 1,900 employees within its video-game divisions, including recently acquired Activision Blizzard. According to Layoffs.fyi, tracking tech industry job cuts, over 70 tech companies, including major players like Amazon and Alphabet, have collectively laid off nearly 32,000 employees in the current year.
The tech industry’s workforce reduction trend appears ongoing, with even Google’s CEO, Sundar Pichai, cautioning employees to brace for further job cuts as the company implements additional cost-cutting measures.
