Employment Law

Instacart Layoffs: 250 jobs being axed, streamlining operations

A photo of a person's groceries on a table. (Photo: Nathan Dumlao / Unsplash)

Grocery-delivery giant Instacart is eliminating approximately seven per cent of its workforce, or 250 jobs, as it restructures its business.

What’s happening at Instacart?

In her Q4 2023 letter to shareholders, CEO Fidji Simo said the layoffs will “allow us to reshape [Instacart] 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.”

“I am confident this will enable us to execute with even more focus and efficiency moving forward.”

According to a regulatory filing, Maplebear Inc. (doing business as Instacart) is anticipating approximately US$19 million to US$24 million in non-recurring charges — predominantly related to cash expenditures for employee transition, severance payments, and benefits.

Most of the job cuts are expected to occur by the end of March.

Impact on Canadian staff

It remains unclear if any Canadian employees are affected by the latest reduction at Instacart.

The company has more than 900 workers in the country, according to its LinkedIn page.

Termination agreements for Instacart employees

In Canada, non-unionized employees at Instacart are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

• Severance for provincially regulated employees
Rights to severance for tech sector staff
• Rights to severance during mass layoffs

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Major tech layoffs continue

The job cuts at Instacart come amid a flurry of tech sector layoffs in 2024.

Big names, including BlackBerry, Grammarly, Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, Microsoft, eBay, Wayfair, YouTube, Google, and Instagram, have also pulled out the axe as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Boundless Learning laying off 15% across company: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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