Grocery- and liquor-delivery startup GoPuff is cutting 10% of its global workforce and shuttering 76 warehouses across the U.S. in an effort to cut costs, according to a new report.
Citing a letter to investors that it obtained, Bloomberg News reported Tuesday that the company will lay off about 1,500 employees as it pivots sharply after years of rapid expansion. Earlier this year, GoPuff laid off about 3% of its global workforce.
GoPuff reportedly said that the cuts are intended to aid its goal of profitability by 2024. “These shifts are not only accelerating our timeline to profitability, they are taking us back to our roots of keeping profitability at the core of every decision,” the letter said, according to Bloomberg.
GoPuff’s parent company, Philadelphia-based GoBrands Inc., reportedly hired bankers in January to prepare for an initial public offering.
It was valued at about $15 billion last July, after completing a $1 billion funding round.
GoPuff said it employs about 10,000 people, has a network of hundreds of fulfillment centers and delivers to more than 1,000 cities in the U.S., U.K. and France.
In 2020, GoPuff acquired West Coast alcohol-beverage retail chain BevMo for about $350 million.