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Rapid grocery delivery firm Gorillas makes layoffs, targets profitability

gorillas warehouse

Berlin, May 24th 2022 – Like many players in the Start-up and Tech scene, Gorillas is currently working in a challenging and complex global environment. After closing our last funding round in October 2021, we shifted our focus from hyper growth to a clear path to profitability, which enabled us to increase the efficiency of our business significantly.

The recent developments in the capital markets confirmed this strategy and proved that we need to reinforce our company’s focus toward profitability. As a part of our plan, we have precisely defined our next strategic steps and how we can succeed in reaching our ambitions.

As of now, 90% of our revenue comes from five key markets which have entered a clear path to profitability: Germany, France, UK, Netherlands and the US. For this reason, we have decided to sharpen our focus and continue to grow these five markets, where we see huge potential in the near future.

In Italy, Spain, Denmark and Belgium, very attractive markets in their own rights, we are looking at all possible strategic options for the Gorillas brand.

In our five core markets, we realigned our priorities with our cost structure: a 100% focus on our customers and the Gorillas brand. We will be working even more on our assortment, our pricing, our order experience and our logistics to bring our customers the best shopping experience possible. At the same time we will continue developing the Gorillas brand and position it as the market leader, to further build a bold, authentic and value-driven brand.

With this focus comes a change in staffing needs. We thoughtfully and carefully looked at our teams against our focused business objectives and have decided with a heavy heart to adjust the size of our global workforce.

In line with the focus on our new key priorities, on our core European markets and on our path to profitability, nearly 300 team members of our global office workforce will be leaving Gorillas. We are starting the discussions today and, over the coming weeks, we will follow with local employee consultation processes in each market as appropriate.

While this was an extremely hard decision to make, these are necessary moves that will help Gorillas to become a stronger and more profitable business with a sharpened focus on its customers and its brand. With our current investments we are strengthening our position both financially and strategically for the future.
We are extremely proud and grateful for what our teams have achieved over the last two years and we will do everything we can to support our employees in this transitional phase.

About Gorillas

Gorillas, founded by CEO Kagan Sümer, builds an infrastructure for the fastest last-mile delivery of essential human needs. The on-demand delivery startup needs just a few minutes to get a user’s desired goods from the cart to the user’s desired location. Users of the app benefit from access to more than 2,000 essential items at retail prices for a delivery fee of just 1.80€. By disrupting the shopping and supply chain experience of traditional retail companies, Gorillas is shaping new grocery consumer behavior (Need-Order-Get). In a little over two year, Gorillas has expanded to more than 60 cities, including Amsterdam, London, Paris, Madrid, New York, and Munich, and built more than 230 warehouses across 9 countries.