Top News

Company to cut 250 employees, or about 7%

A smartphone with an Instacart logo displayed is seen in this illustration taken March 25, 2022.

Dado Ruvic | Reuters

Instacart on Tuesday announced it would lay off about 250 employees, or roughly 7% of the company, as part of a restructuring. The news came as the company reported fourth-quarter earnings that fell roughly in line with analysts’ revenue estimates.

Shares of the company fell 12% in extended trading.

The layoffs are focused in part on middle management and creating a flatter organizational structure, according to Instacart, as well as focusing teams on larger projects, such as advertising efforts on Roku, Google Ads and more.

Three top executives are also departing the company for personal reasons, according to Instacart: COO Asha Sharma, CTO Varouj Chitilian and chief architect JJ Zhuang. Instacart will only backfill the CTO role.

The company posted fourth-quarter revenue of $803 million, roughly in line with the $804 million that Wall Street expected, according to analyst estimates from LSEG, formerly Refinitiv.

In September, Instacart went public in one of the first significant venture-backed tech IPOs since December 2021. In its prospectus, the company said it would focus on incorporating artificial intelligence and machine learning features into the platform, and that it expected to rely on those features to “drive future growth in our business.”

Instacart shoppers and drivers deliver goods in over 5,500 cities from more than 40,000 grocers and other stores, according to its website. The business took off during the covid pandemic as consumers avoided public places. But profitability has always been a significant challenge, as it can be with much of the gig economy, because of high costs associated with contractor payouts.

This story is developing. Please check back for updates.

Source link

Related Articles

Leave a Reply

Your email address will not be published.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

Back to top button