Instacart cuts 250 jobs after reporting increased revenue

Another day, another layoff happening in the tech world. Instacart has a popular grocery delivery and pickup service He announced that 250 workers were terminated — about seven percent of the workforce. Those who have been laid off are primarily middle management or people who work on advertising through platforms like Google Ads and the like. Roku. Most of the layoffs will take effect by March 31, with Instacart estimating that the process will cost the company between $19 million and $24 million due to factors such as severance pay and employee benefits.

Instacard announced the news along with its fourth quarter earnings. Despite choosing to cut jobs, the company reported a six percent increase in revenue, jumping from $803 million to $804 million year-over-year. At the same time, Instacart is seeing three executives leave voluntarily: the chief operating officer, the chief technology officer and the chief architect.

The layoffs come shortly after Instacart’s September 2023 IPO. Unlike many companies that barely survived (or didn’t) the COVID-19 pandemic, Instacart thrived. This allowed people to stay and still buy food and other essentials. It is now available in 5,500 cities and, like most companies of the past year, is focused on building AI capabilities. However, despite its growing revenue, the company’s layoffs indicate that all is not going as planned. Instacard.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *