Gopuff cuts 10% of its international workforce, closes 76 U.S. warehouses

Supply startup Gopuff is chopping 10% of its international workforce and shutting 76 U.S. warehouses, based on a letter to traders.

The layoffs impression about 1,500 workers who can be knowledgeable all through Tuesday, the letter mentioned. The corporate can be closing 76 warehouses, about 12% of its community, throughout the U.S. whereas increasing providers in different higher-performing websites.

“As a part of our efforts to take away overhead and drive operational efficiencies, we have now made the extremely difficult determination of decreasing our international workforce by 10%,” the letter mentioned. “Whereas troublesome, this restructures us to align extra intently round enterprise priorities whereas accelerating our path to profitability.”

The corporate additionally mentioned that it’ll give attention to bettering its core enterprise, which is prompt supply, and rising worldwide funding, particularly within the U.Okay.

“These shifts should not solely accelerating our timeline to profitability, they’re taking us again to our roots of preserving profitability on the core of each determination,” the letter mentioned. “We stay dedicated in our ambition to constructing a generational enterprise and really feel assured as ever in Gopuff’s efficiency and talent to capitalize on the second earlier than us.”

The information was first reported by Bloomberg.

Gopuff is among the so-called fast-delivery corporations, which frequently promise orders to succeed in your door in 30 minutes or much less. Companies prefer it been closely backed by enterprise capitalists. However a dramatic shift has appeared to happen in current months within the speedy supply phase as VCs transfer away from a growth-at-all-costs model that after boosted corporations like Uber.