Rapid grocer Getir is to reduce its global headcount by 14% due to “rising inflation and the deteriorating macroeconomic outlook”.
The move will impact employees in the UK, the Turkish q-commerce player confirmed to The Grocer.
“Yes, there will be some impact to the UK in response to the challenging environment we are all operating in,” a spokesman said.
“We will not be giving specific impacts to the UK team, but will ensure that any decisions we make are right for our people and our business,” he added.
As first reported by TechCrunch, and confirmed to The Grocer, Getir will also “decrease spending on marketing investments, promotions, and expansion”.
In a memo to staff, the rapid grocer said there would be no change to the countries Getir operates in. Job cuts would affect all countries but “numbers will vary” between them, the memo states.
In March the company completed a Series E funding round, raising $768m. The investment took the company’s valuation to $11.8bn. At the time Getir said it had a total network of more than 1,100 dark stores and close to 40 million app downloads across nine countries, and delivered close to one million orders daily.
It is not the only rapid grocer to be shedding staff. Today, rival Zapp confirmed to The Grocer it had entered a collective consultation process with UK employees, which includes proposed redundancies. The company is in talks to lay off 10% of its staff, about 250 employees. On Tuesday, Gorillas announced it is cutting its global headcount by 300 and pulling out of Italy, Spain, Denmark and Belgium as it “intensifies the shift to long-term profitability”.
Nearly 300 team members from Gorillas’ global office workforce will be leaving the company, Gorillas said. “Sadly, this development may potentially affect a number of UK staff,” a Gorillas spokeswoman told The Grocer.
In March it was revealed Gopuff was cutting 3% of its global workforce, more than 400 employees.
“Is the sky falling? No, it’s just an adjustment,” said online grocery consultant Viv Craske.
“The money is no longer flowing in the billions for unchecked growth. Venture capitalists expect a path to profitability. The model of ‘back the winner with insane amounts of cash’ is being reined in. Now it’s about backing business models that work,” he added.
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