Turkish instant delivery startup is downsizing, Getir layoffs will affect 4480 people around the globe. It’s been a tough week for e-commerce firms in Europe. According to TechCrunch, Getir — the $12 billion instant delivery upstart that offers groceries and sundries and promises delivery in minutes — is cutting 14% of its staff worldwide, as discovered and confirmed. The Turkish firm is said to have 32,000 workers in the nine countries where it does business, which would imply 4,480 individuals affected by the layoffs.
Aside from the staff, the firm will also reduce its capital-intensive growth — that is, hiring, marketing expenditures, and sales incentives.
Getir layoffs will affect 4480 people
According to a memo published by TechCrunch, the Getir layoffs will vary by country. The firm has stated that it will not be withdrawing from any one country as a result of this. Currently, Getir is operating in Turkey, the United Kingdom, Spain, Netherlands, Portugal, Germany, France, Italy, and the United States.
This is a big swing in the other direction for a firm that raised $768 million at an $11.8 billion valuation just two months ago. But it’s not entirely out of the ordinary when you consider where we are in the broader market climate, which has seen tech firms large and small see their finances and valuations decline as a result of wider market cooling.
Getir’s main rivals in Europe, Gorillas, recently announced 300 layoffs and plans to look at strategic alternatives, such as sales or exits, in numerous European countries. Klarna — the Swedish buy now, pay later service — confirmed Thursday that it will eliminate 10% of its staff following reports that it was attempting to sell itself at a lower price.
Getir was an early entrant into the “instant grocery” market when it was founded seven years ago, but the category has exploded in recent years.
Consumers were more likely to experiment with ordering groceries online for the first time, in COVID-19 influenced consumer behavior. Many shops were closed for lengthy periods of time, and customers were less inclined to shop in person when they were open, resulting in a rise in people who wanted to try buying groceries online for the first time. Many firms sprouted up, bolstered with significant amounts of venture capital, to cater to those customers, and a large number of these businesses were founded on the promise of “instant” delivery, with items arriving at your home within minutes after placing an order.
Getir was among the consolidators, alongside other major players such as Gopuff, Flink, and Gorillas, before the capital markets collapsed in April. That’s a trend that has continued into 2022, and there will undoubtedly be even more to come.
Below you will find the memo shared by TechCrunch:
Today is one of the most difficult days since we founded Getir, because we have to make tough decisions about our people organization that will adversely affect some of our team members.
Rising inflation and the deteriorating macroeconomic outlook around the world pushes all companies, especially in the tech industry and including Getir, to adjust to the new climate.
With a heavy heart, we today shared with our team the saddening and difficult decision to reduce the size of our global organization. At a global headquarter base, our reduction will be about 14%. Numbers will vary by country.
We do not take these decisions lightly. We will do right by every person throughout this process in line with Getir’s values of being a good and fair company. We will also decrease spending on marketing investments, promotions, and expansion.
There is no change in Getir’s plans to serve in the nine countries it operates. In these tough times, we are committed to leading the ultra-fast grocery delivery industry that we pioneered seven years ago.
