Instacart Slashes 1,900 Jobs, Citing Pickup
Instacart is killing around 1,900 jobs, including those of Illinois workers who voted to join the United Foods and Commercial Workers (UFCW) union last year, according to Bloomberg and other media outlets.
In one letter Instacart notified the union to United Foods and Commercial Workers Local 1546 that changes would be made that would affect the bargaining unit at Mariano’s Skokie, Illinois store. As part of the proposed transition, Instacart said it would “offer” those affected a chance to apply to the retail store where they currently work.
The UFCW said the layoffs will affect at least 20 percent of Instacart’s frontline positions.
“Instacart, which is laying off the only unionized workers in the company and destroying the jobs of nearly 2,000 dedicated frontline workers in the midst of this public health crisis, is just wrong,” union president Marc Perrone said in an email to the Los Angeles times.
Silicon Valley’s delivery platform announced that it will be providing compensation packages between $ 250 and $ 750 to workers affected by the layoffs. Instacart has approximately 500,000 full service customers (FSS) making deliveries and fewer than 10,000 in-store customers (ISS). employed by Instacart.
“We know this is an incredibly challenging time for many as we move through the COVID-19 crisis and we are doing everything we can to help customers in business make this transition,” said Instacart in one Blog Post on medium.
According to the company, it works with over 500 retailers. When it comes to online groceries, there is no one-size-fits-all solution. Instacart also supports roadside collection for more than 60 food partners, including ALDI, Food Lion and Wegmans.
“In 2020, we introduced Instacart pickup services to more than 2,000 new retail locations and today made the service available in more than 3,300 stores in more than 30 states,” the blog post reads. “Due to the changeover of some grocery stores to a partner pick model, we will cease operations at selected retail locations in the coming months.”
The company announced that it would introduce two “different Instacart pickup models” – Partner Pick and Instacart In-Store Shopper Pick. There are also plans to test a new feature that will allow full-service customers to carry out collection orders.
Goldman SachVeteran Nick Giovanni was recently hired to replace CFO Sagar Sanghvi as Instacart prepares for an initial public offering led by Goldman Sachs.
Founder and Chief Executive Officer Apoorva Mehta said Giovanni has advised some of the largest companies in the world.
recording growth and competition amid the pandemic prompted Instacart to give its gig workers $ 50 to $ 500 vacation pay. Last year was the busiest in the company’s eight-year history.
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