Instacart Freezes Hiring, Cuts Staff Ahead Of IPO

Instacart Freezes Hiring, Cuts Staff Ahead Of IPO

Instacart Freezes Hiring, Cuts Staff Ahead Of IPO
Instacart Freezes Hiring, Cuts Staff Ahead Of IPO
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Grocery delivery company Instacart is gearing up for its initial public offering (IPO) by letting go of employees and reigning in its overhead costs.

The company had confidentially filed paperwork with the U.S. Securities and Commission to go public in May this year, soon after its valuation fell by 40% to $24 billion.

Instacart has already let go of more than 3,000 employees and at least three senior-level employees. However, the company’s top-tier management has not seen any attrition.

The company has also asked its managers to curb spending on travel and team gatherings and pause hiring for various roles — much in line with other technology companies, Reuters reported.

While Instacart is taking these steps, reports indicate that the company is focusing on the sale of employees’ shares during its IPO and does not plan to raise significant capital during the process.

Earlier in July, the company’s founder Apoorva Mehta announced plans to exit and step down from his chairman position once the company goes public.

“Since I transitioned from CEO to Executive Chairman a year ago, I realized that I want to pursue a new mission, and I want to do it with the same singular focus that I had while building Instacart,” Mehta said on Twitter.

“Stepping off the board will allow me to do just that. Instacart has an enormous opportunity, and I have confidence in the team’s ability to achieve its full potential. Onwards!”

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