Instacart cuts 250 jobs after reporting increased revenue
Another day, another layoff occuring in the tech world. Instacart, the popular grocery delivery and pick-up service has announced the termination of 250 employees — about seven percent of its workforce. The layoffs are primarily individuals from middle management or who work on advertising through platforms like Google Ads and Roku. Most of the layoffs will go into effect by March 31 with Instacart estimating that the process will cost the company between $19 million and $24 million due to factors like severance pay and employee benefits.
Instacart released the news along with its fourth-quarter earnings. Despite choosing to layoff employees, 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 the voluntary departure of three of its executives: the chief operating officer, chief technology officer and chief architect.
The layoffs follow only a short time after Instacart's September 2023 IPO. Unlike many companies that barely (or didn't) survive the COVID-19 pandemic, Instacart thrived. It allowed people to stay and still receive their groceries and other necessary items. Now, it exists in 5,500 cities and, like most companies of the past year, is focusing on building its AI capabilities. But, despite its increased revenue, the company's layoffs signal that not everything is going as planned over at Instacart.
This article originally appeared on Engadget at https://www.engadget.com/instacart-cuts-250-jobs-after-reporting-increased-revenue-112503431.html?src=rss[original story: Engadget]