Gorillas ’fast-delivery product startup is coming out of several regions of Europe to focus on its key markets, including the UK, as the company shifts its focus from“ hyper-growth to a clear path to profitability ”.
Berlin product delivery company said it will cut about 300 roles in its global workforce to extend its escape amid a challenging economic period for the technology industry.
Most of the roles being filmed are at the company’s German headquarters in Berlin.
In addition to staff cuts, Gorillas has announced plans to close in Italy, Spain, Denmark and Belgium to better focus on what it describes as key markets in the UK, the Netherlands, the US, France and Germany.
The company said 90% of its revenue comes from these five markets, so it will focus on trying to achieve profitability on those before continuing services elsewhere.
Founded in 2020, Gorillas is one of several fast delivery startups that emerged during the pandemic for courier orders to consumers in 20 minutes or less.
Rapid growth of gorillas
Gorillas ’growth has been as rapid as its delivery service, providing $ 1.3 billion in funding, including an incredible Series C for $ 1 billion tour last September. His last publicly available estimate was $ 3.1 billion, just over a year after the first crop round.
However, despite the fact that huge sums of money have been thrown at startups in the fast delivery market – especially during the pandemic boom in the industry – profitability remains a challenge for everyone as far as Garillas is concerned may not be able to live up to his high expectations to continue.
Despite raising astronomical financial figures in such a short time, sources close to the company claim that it faces significant debts to suppliers and operates at a monthly rate of up to $ 75 million, according to TechCrunch.
Gorillas is just one of many technology companies experiencing the heat of tough economic times. Buy now, pay later. Klarna has announced it will cut 10% of its staff, while London-based online platform Hopin lost about 12% of its staff back in February.