US-based grocery delivery company Instacart is understood to be implementing several cost reduction measures ahead of an initial public offering (IPO).
Citing The Information and certain insiders, Reuters reported the company has been cutting staff, paused or slowed down its hiring and placed restrictions on expenditures.
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Instacart laid off an unspecified number of its employees in the last two months after carrying out its mid-year performance reviews.
The company currently has a workforce of more than 3,000 people.
In addition, Instacart has reportedly made at least three senior-level employees redundant, with the exception of top management positions.
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The firm is also said to have gone slow on recruiting new talent and restricted its expenditures in certain areas, including travel and team gatherings.
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By GlobalDataIn May this year, Instacart confidentially filed documents for an IPO with the US Securities and Exchange Commission.
This comes after prevailing market turbulence forced the firm to lower its valuation by nearly 40%.
Reuters noted that the developments come in the context of higher interest rates, red-hot inflation and an energy crisis in Europe.
These factors have led several technology companies, cryptocurrency exchanges and financial firms to cut jobs and slow their hiring.
In July, Instacart announced that its founder and executive chairman Apoorva Mehta would step down from his role once it becomes a public company.
Last week, the Wall Street Journal (WSJ) reported that the company planned to sell its employees’ shares instead of raising much capital in its IPO.
Instacart recently launched Connected Stores, a suite of modular technologies designed to enable retailers to combine their online and in-store shopping experiences.
The suite consists of the Caper Cart, Scan & Pay, Lists, Carrot Tags, FoodStorm Department Orders and Out of Stock Insights technologies.
These have been trialled by several grocers across the US and Canada.
