On July 3, 2022, Gorillas laid off 540 employees, a significant portion of its workforce. This move reflects the company's ongoing restructuring efforts.
Headquartered in Berlin, Gorillas operates in the food delivery industry. The layoffs are part of a broader strategy to streamline operations and achieve profitability.
Gorillas decided to lay off 540 employees as part of a strategic move to focus on more profitable markets. The company is exiting the Italian market, which it deemed less promising.
Gorillas did not comment on this layoff.
The decision to exit the Italian market and lay off employees could be due to the financial challenges and lack of profitability in the Italian market. The broader context of the digital retail sector facing difficulties in achieving profitable margins might have influenced Gorillas' decision. The company's strategic shift to focus on markets with better financial returns suggests that the Italian market did not meet their profitability criteria.
The reduction of 540 employees at Gorillas has significantly impacted its workforce, particularly affecting roles in the Italian market. This downsizing is likely to disrupt various departments, including logistics and customer service, as the company scales back its operations.
In the broader industry, other companies in the food delivery sector have also announced layoffs. For instance, Getir and Zapp have recently reduced their workforce, reflecting a trend of consolidation and cost-cutting in the market.
The layoffs indicate a pivotal moment for Gorillas, suggesting a shift towards a more sustainable and focused business model. The company is likely to prioritize efficiency and profitability in its future endeavors.
Sunset helps startups wind down by handling all legal, tax, and operational burdens, allowing founders to avoid penalties, reduce liabilities, and move on quickly. For personalized guidance and support, contact us to schedule a consultation or learn more. Sign up today and try it out!
