Smartphone with the Instacart logo displayed is seen in this photo taken on March 25, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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September 24 (Reuters) – Grocery delivery app Instacart Inc. has laid off staff, slowed hiring and curbed other spending as it heads towards a public listing, the information reported on Saturday, citing people familiar with the matter.
Instacart announced in May that it had confidentially filed with the US Securities and Exchange Commission for an IPO shortly after it cut its valuation by 40% to about $24 billion in the wake of market turmoil.
According to the report, the San Francisco startup has laid off some of its more than 3,000 employees over the past two months after conducting mid-year performance reviews.
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The report adds that Instacart has laid off at least three senior employees in recent weeks, but does not include any departures from the company’s top management positions.
The grocery delivery app said in July its founder Apoorva Mehta would step down from his role as chairman and leave the company once it went public.
Instacart also paused hiring for various positions and managers were given instructions to limit spending in areas like travel and team meetings, the report said.
Instacart declined to comment on the report when contacted by Reuters.
Earlier this week, The Wall Street Journal reported that the company plans to focus on selling employee stock in its U.S. IPO and does not intend to raise much capital for the company.
The development comes as tech companies, crypto exchanges and financial firms cut jobs and slow hiring amid higher interest rates, blistering inflation and an energy crisis in Europe.
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Reporting by Mrinmay Dey in Bengaluru Editing by Chris Reese
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