Philadelphia-based retailer Gopuff has slashed nearly 250 employees.
The rapid delivery startup stumbles to stem its cash burn in a sluggish economy.
Familiar people said the job cuts mostly hit its customer service unit.
It included both full-time and temporary workers.
As of March, Gopuff employed around 15,000 people.
Some laid off employees described the firings as chaotic.
They weren’t notified before their access to internal systems like Slack, email, and human resources portals were disabled, though they were still working shifts.
Other full-time staffers were assured that severance payouts were “coming soon.”
Closely held Gopuff is battling an uncertain economic climate while competing with rivals like as DoorDash.
In March, the company removed 3 percent of its global workforce and further reduced its headcount in July, letting go of about 1,500 people.
Over the summer, it also closed 76 warehouses, or around 12 percent of its network, across the US in order to streamline its footprint in some cities.
The firm said in a statement that the recent layoffs were anticipated as part of the July restructure.
Need Career Advice? Get employment skills advice at all levels of your career
A spokeswoman said: “The most recent impacts to the customer service team were part of this reorganization which we’ve been implementing for the last three months.”
Although Gopuff executives planned to remove the positions months ago, staffers were not alerted until recently.
Karen Fascenda, vice president of people, said in an email sent to select staff last week that “the delayed action was to ensure we maintain business continuity.”
Fascenda added that the job losses would “help to optimize for the company’s long-term success” and that “there are no plans for incremental layoffs.”