Instacart Announces Layoffs and Executive Departures Amid Fourth Quarter Earnings Release

Grocery-delivery giant Instacart revealed that it is laying off approximately 250 employees, amounting to about 7% of its workforce, as part of a corporate restructuring effort. In a letter to investors, CEO Fidji Simo articulated that the reorganization will enable the company to streamline its operations and concentrate on its most promising initiatives for long-term transformation, stating:

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 our most promising initiatives that we believe will transform our company and industry over the long-term. I am confident this will enable us to execute with even more focus and efficiency moving forward.

 

The layoffs were disclosed alongside the unveiling of its fourth-quarter earnings, reporting revenues of $803 million, slightly below analysts’ estimate. The company noted that the layoffs will facilitate the alignment of its organizational structure with existing business needs, strategic priorities, and growth opportunities. Additionally, as reported by CNBC, three top executives are also departing the company for personal reasons: Chief Operating Officer Asha Sharma, Chief Technology Officer Varouj Chitilian and chief architect JJ Zhuang. Instacart will only backfill the CTO role.

Instacart's recent layoffs align with a broader trend in the tech industry, with several companies, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo, conducting significant workforce reductions in the past few weeks.

The company's delivery service operates in over 5,500 cities, serving more than 85,000 grocers and stores, experiencing a surge in demand during the Covid-19 pandemic.