Instacart, a US-based grocery-delivery platform, has laid off 250 employees as part of a restructuring exercise. The decision will result in around seven per cent of the workforce being rendered jobless.
The layoffs primarily target middle management positions, aiming to create a more streamlined organisational structure.
This move coincides with the company’ fourth-quarter earnings that closely aligned with analysts’ revenue projections, resulting in a five per cent decline in the company’s shares during extended trading. Additionally, the company intends to refocus teams on significant projects, particularly advertising initiatives on platforms such as Roku and Google Ads.
Three high-ranking executives— Asha Sharma, chief operating officer, VaroujChitilian, chief technology officer and JJ Zhuang, chief architect— are quitting the company for personal reasons. Instacart plans to fill only the vacant CTO position.
Having gone public in September 2023, Instacart highlighted its commitment to incorporating artificial intelligence (AI) and machine learning features into its platform, anticipating these technologies to be crucial for future business growth.
Instacart partners with various grocery chains and retailers to provide a wide range of products. The grocery delivery and pick-up service platform allows customers to order groceries and household items online from local stores and have them delivered to their doorstep or prepared for pickup.
It operates in over 5,500 cities, partnering with more than 85,000 grocers and stores. The company experienced significant growth during the Covid-19 pandemic when consumers sought to fulfil their needs without stepping out.
