By guest author Isabel Cameron from Charged Retail
Gopuff is cutting 10 % of its global workforce and shutting 76 of its US warehouses, according to a letter to investors.
The staff cuts will impact around 1500 employees, who were notified throughout July 12, according to the letter.
The rapid grocery delivery company is also closing 76 warehouses, approximately 12 % of its network, across the US. However, it plans to expand services across other higher-performing sites.
“As part of our efforts to remove overhead and drive operational efficiencies, we have made the incredibly challenging decision of reducing our global workforce by 10 %,” the letter said.
“While difficult, this restructures us to align more closely around business priorities while accelerating our path to profitability.
These layoffs and cuts are an effort to help the company achieve profitability by 2024, it said in a letter to investors.
Gopuff also said it is focused on enhancing its core business, which is instant delivery, and increasing international investment, particularly in the UK.
“These shifts are not only accelerating our timeline to profitability, they are taking us back to our roots of keeping profitability at the core of every decision,” the letter said.
“We remain committed in our ambition to building a generational business and feel confident as ever in Gopuff’s performance and ability to capitalize on the moment before us.”
Last year, Gopuff was valued at USD 15 billion and was reportedly considering a 2022 public listing, but has since halted these plans due to a broader slowdown in market debuts.