Getir laying off thousands of workers, cutting expansion plans

Ultrafast delivery just can’t catch a break this week. On Wednesday, Turkish instant delivery startup Getir told employees in an internal memo that it would be slashing its global workforce by around 14%. The news comes on the heels of Tuesday’s announcement from rival startup Gorillas that it would lay off 500 employees, or about half of its office workforce.

Estimates place Getir’s workforce at around 32,000 strong, meaning the cuts would impact some 4,480 employees. In addition, Getir said that it would be cutting back spending on marketing, promotions and expansion, though it added that it would not be pulling out of any markets. Those include Germany, France, Spain, Italy and New York City in the U.S.

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“Rising inflation and the deteriorating macroeconomic outlook around the world pushes all companies, especially in the tech industry and including Getir, to adjust to the new climate.

“With a heavy heart, we today shared with our team the saddening and difficult decision to reduce the size of our global organization. At a global headquarter base, our reduction will be about 14%. Numbers will vary by country,” read the text of the memo, which was obtained by TechCrunch.

For Getir, the news is especially disheartening considering the startup raised $768 billion only two months earlier. That raise brought its valuation to nearly $12 billion, but the rug is beginning to be pulled out from under it and the young instant delivery industry more generally.

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Instant delivery got off to a hot start with startups like Jokr and Gopuff seeing plenty of early success. But the companies are now experiencing some major growing pains, and the news of layoffs at Getir and Gorillas is just the latest ailment.

The first domino fell in December, when New York’s 1520 shut down after burning through cash. Just a few months later, rival startups Buyk and Fridge No More followed suit, ceasing operations entirely just months after launch. Jokr, meanwhile, has been rumored to be shopping its business after reports suggested that the company loses up to $159 per order in the U.S.

Even Gopuff, the poster child for ultrafast delivery, has had its struggles. Late in March, it was reported that the Philadelphia-based company would lay off 3% of its workforce. That news came after reports of a hiring freeze and the resignations of several key executives earlier that month.

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Source: freightwaves - Getir laying off thousands of workers, cutting expansion plans
Editor: Jack Daleo