Instacart says it will lay off approximately 250 employees, while Chief Operating Officer Asha Sharma, Chief Technology Officer Varouj Chitilian and Chief Architect JJ Zhuang are exiting for personal reasons.
“This will allow us to reshape the company and flatten the organization so we can focus on our most promising initiatives that we believe will transform our company and industry over the long term,” Instacart CEO Fidji Simo said in a letter to shareholders. "We’re also positioning Instacart to take on our most ambitious bets while streamlining how we operate."
Simo said she expects a strong start to 2024, with first quarter year-over-year gross transaction value growth anticipated to accelerate for a fourth consecutive quarter.
According to the shareholder letter, a first quarter 2024 financial outlook for Instacart anticipates a gross transaction value between $8,000 million and $8,200 million, signaling a 7% to 10% year-over-year increase. This growth is primarily fueled by orders rather than average order value, the letter said, adding that the projection also factors in leap day and seasonal fluctuations.
Adjusted EBITDA is expected to range from $150 million to $160 million, comprising 1.9% to 2% of gross transaction value, the company said. The forecast considers seasonal fluctuations in advertising revenue and ongoing investments in marketing and consumer incentives aimed at fostering sustainable, profitable growth, according to the letter.
"Overall, I am proud of our team’s hard work that delivered solid Q4 results and set us up for an even better 2024," Simo said. "I believe that we have a strong and highly defensible leadership position that, when combined with accelerating growth, will generate more shareholder value over time."