Gousto forced to slash jobs after food delivery service’s ambitious hiring plans fall flat
Meal kit delivery service Gousto, is understood to have cut its workforce by some 14 per cent as the group’s ambitious hiring plans have taken a hit.
According to reports in Sky News, the convenience service made all redundancies at the end of last year and fewer than 100 employees were let go.
Earlier this month, Gousto slashed its valuation after raising £50m in additional funding to “steer it through a volatile economic period”.
At the time, insiders told the outlet that the funding round had not yet been announced “but took place at a significant discount to the $1.7bn (1.4bn) valuation at which the company raised funds just over a year ago”.
Gusto, which launched in 2012, launched a $100m (£83.5m) primary fundraising in January 2022 – this was followed by a $230m (£192m) secondary share placing which allowed existing investors to scale back their holdings.
The brand, which is backed by fitness guru Joe Wicks, said in 2021 that it planned to double its workforce after it had delivered a year of profitability during the pandemic.
It comes as a number of companies which shot to success during lockdown have been forced to scale back employment.
A few weeks ago, Deliveroo also revealed that it was forced to slash 350 job roles across all levels due to a decline in take away sales post pandemic.
Moreover, eBay has also cut 500 staff roles and Zoom was also forced to make around 1300 staff redundant.
City A.M has approached Gusto for a comment.