- More than 200 employees on Gopuff’s customer service team were laid off recently.
- The company says this round of cuts was part of July layoffs that affected 10% of the workforce.
- The recent cuts were carried out in October for “legal and organizational” reasons, Gopuff said.
The cuts hit Gopuff’s customer service team, full-time employees as well as temporary workers, according to people familiar with the matter. Gopuff has outsourced most of its customer service operations to the Philippines, these people said. They asked not to be identified discussing private topics.
In a statement to Insider, Gopuff confirmed the layoffs, saying it affected less than 250 workers. A spokesperson added that these layoffs were not part of a new cost cutting measure but instead were part of a previous round of layoffs.
“In July, Gopuff announced a company-wide reorganization and 10% reduction in workforce as part of a broader restructuring effort to focus on profitability. The most recent impacts to the customer service team were part of this reorganization which we’ve been implementing for the last three months,” the statement read.
The July layoffs were the second round of major cuts by Gopuff this year. In April, the company also cut 3% of its global workforce. These cost cutting measures coincide with an economic slowdown and the drying up of startup funding markets — especially within the once hot delivery space. Gopuff, which had planned to go public this year, has had to postpone those plans and make significant cost cuts in a bid to start generating a profit.
Some of the newly laid off Gopuff workers posted about the situation on Twitter, Reddit and Linkedin. In one Zoom video posted on Reddit, a company representative told a group of temporary workers that their positions were “terminated, effective immediately” and told to contact HR if they had any further questions.
The video lasts roughly 1 minute and the representative seems to read from a script. “As some of you are aware the customer service team has been undergoing a reorganization with a focus on the broader business strategy with a focus on optimization for our customers,” he said. “I regret to inform you that your role has been impacted by this reorganization and your role has been eliminated.”
“I want to thank each of you for the contributions you’ve made to Gopuff; I wish you the best of luck for the future,” the representative added.
The video ended abruptly with no time for questions.
“My heart goes out to my former colleagues at Gopuff,” a former district manager posted to LinkedIn. “This business is clearly failing! I hope that everyone still there can find their way out before you’re the next victim of their awful business antics.”
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