Instacart to lay off 250 workers in restructuring exercise
The announcement came as the company posted fourth-quarter earnings that were approximately in line with analysts' revenue expectations.
IANS
SAN FRANCISCO: US-based grocery delivery company Instacart has announced to lay off about 7 per cent of its global workforce, or about 250 employees, as part of a restructuring plan.
The announcement came as the company posted fourth-quarter earnings that were approximately in line with analysts' revenue expectations.
"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).
The company estimates to incur approximately $19 to $24 million in non-recurring charges in connection with the restructuring plan, predominantly related to cash expenditures for employee transition and severance payments and employee benefits.
"Of the total restructuring expenses, $17 to $22 million is expected to result in future cash outlays," according to the company.
As per Instacart, the layoffs are aimed at middle management and creating a flatter organisational structure, as well as focusing teams on major projects like advertising efforts on Roku, Google Ads and more.
Chief Operating Officer (COO) Asha Sharma also informed the company to resign from her position, effective March 1, 2024. The company does not plan to hire or appoint a new COO at this time.
According to its website, Instacart shoppers and drivers deliver groceries to over 5,500 cities from over 85,000 supermarkets and other retailers. The business grew during the Covid-19 outbreak as people avoided public places.
