Gorillas has announced it is laying off 300 employees and exiting four markets — Italy, Spain, Denmark and Belgium — as it seeks to shift from “hyper growth” to “a clear path to profitability.”
The rapid delivery company will now be focusing on its home market of Germany, as well as France, the Netherlands, the UK and the US, which it says collectively account for 90% of its current revenues.
The cuts will mainly affect staff in its Berlin HQ and represent approximately half of Gorillas’ employees, most of whom have only joined in the last six months. Therefore, they are still on ‘probation’ and the process to redundancy is easier under German labour laws.
READ MORE: Gorillas celebrates 16 million orders worldwide
According to TechCrunch, Gorillas currently has around 700,000 active customers. In addition, a source told the publication that it is estimated the company has around $300 million left in the bank, but is facing trouble due to significant outstanding debts owed to suppliers and others.
Prior to the employee cuts, the company had reportedly been operating on a monthly burn rate of between $50 million and $75 million a month.
The news comes as Jiffy recently announced it will no longer be providing its rapid grocery delivery service, as it makes a major strategic pivot to become a dedicated software company.
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