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Instacart announces 250 job cuts and executive departures

By Nithya Bose in Business News, posted February 14, 2024

Instacart will cut around 250 jobs, or seven percent of its workforce, in a strategic move to restructure the company.

This announcement coincided with the release of the company's fourth-quarter financial results, which aligned closely with analysts' expectations for revenue.

The layoffs target middle management to streamline the company into a more efficient and simplified structure.

The restructuring focuses teams on larger projects, such as advertising measures on Roku, Google Ads, and more.

Instacart also revealed the departure of three senior executives—COO Asha Sharma, CTO Varouj Chitilian, and Chief Architect JJ Zhuang, citing personal reasons.

The company plans to fill the CTO position while leaving the other roles vacant.

Instacart reported a fourth-quarter revenue of $803 million, meeting the expectations set by Wall Street analysts, who had projected $804 million.

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The report comes after Instacart's public debut in September, marking one of the notable tech IPOs in recent years.

In its public offering documents, Instacart said it's committed to improve its platform with artificial intelligence and machine learning technologies to fuel future growth.

The company operates in over 5,500 cities, partnering with over 85,000 grocery and retail stores.

Instacart has seen significant expansion, particularly during the Covid-19, as consumers opted for online shopping to avoid public spaces.

However, the firm struggled to be profitable due to broader issues within the gig economy related to the costs of compensating contract workers.

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