A slew of job cuts as Grocery Delivery players rein in costs

Grocery delivery companies were rocked this week, with major players announcing rounds de layoffs.

Gorillas, a $3 billion Berlin-based company that has been scooping up VC cash for the past two years, announced Tuesday that it would be laying off 300 employees as well as exiting three markets.

In a blog post, Kagan Sumer, chief executive, stated that “Two months ago, March, the markets were turned upside-down, and since then, the situation has continued worsen.”

Gorilla’s Berlin headquarters will see the majority of the job cuts.

Gorillas will be leaving Spain, Italy and Denmark in order to focus on Germany, France, and the US.

The move was similar to that of Getir, its main rival. While the $12 billion Turkish company has been expanding rapidly in Europe, TechCrunch reported Wednesday that the company was cutting 14% of its employees.

Management at Getir cited “rising inflation and the deteriorating macroeconomic outlook worldwide” as the reason for its decision in a memo to employees.

“With heavy hearts, we shared today with our team our saddening and difficult decision about reducing the global organization’s size. Our reduction at a global headquarters base will be approximately 14%. These numbers will vary from country to country.

Sifted also reported on the same day that Zapp, a British start-up, was planning to reduce its workforce by 10%.

Similar comments were made about inflation and supply chain problems, which were also identified as potential challenges for the company. The company was already downsizing and had shut down operations in certain cities in the UK.

This is the latest chapter in a series of changes for grocery delivery companies that operate at tight margins. While Consolidation has increased with several acquisitions in recent months, the US-based player Jokr left the European market completely.

HEY! Could we ask you for a favor? Would you share this article with your friends? It costs you nothing and it takes just a second, but means the world to us. Thanks a lot!