Instacart Cuts 250 Jobs in Push for Higher-Margin Businesses

(Bloomberg) -- Instacart, the US grocery-delivery giant, is cutting hundreds of jobs and restructuring its leadership team as the company increasingly shifts its focus to higher-margin businesses such as advertising.

The company’s announcement on Tuesday includes 250 job cuts across the company, according to a spokesperson. That represents about 7% of the workforce. The restructuring will mean fewer incremental product updates so the company can realign its focus on higher-margin areas such as advertising and enterprise products for grocery stores, the spokesperson said.

In addition to the cuts, three company executives are leaving the company, each for personal reasons, the spokesperson said. They are: Chief Operations Officer Asha Sharma, Chief Technology Officer Varouj Chitilian and Chief Architect JJ Zhuang. Instacart isn’t planning on backfilling Sharma’s and Zhuang’s roles.