Zapp

In 2023, London-based rapid grocery delivery startup Zapp dramatically reduced its workforce as part of major cost-cutting efforts. The average number of employees plummeted from 2,417 in 2022 to just 260 in 2023, representing a layoff of approximately 2,157 staff, or about 89% of its workforce. This drastic reduction followed heavy losses in 2022, which led the company to withdraw from international markets like the Netherlands and France to focus solely on its core London operations. The job cuts, announced in 2022, affected head office roles as well as positions across stores and distribution centers. Despite the severe downsizing, Zapp reported a significant improvement in its 2023 financials, with pre-tax losses shrinking and revenue growing, as it shifted strategy to target affluent customers with higher-value orders.

London-based speedy grocery startup Zapp is laying off approximately 10% of its workforce, affecting an estimated 200 to 300 employees, as part of a restructuring effort announced in late May 2022. The company, which operates in the competitive on-demand grocery delivery industry, cited a challenging macroeconomic climate—including high inflation, the war in Ukraine, and supply chain disruptions—as key reasons for the cuts. Alongside the layoffs, Zapp is closing several of its "dark stores" outside London, including in Manchester, and focusing its operations primarily on the capital to drive efficiency and accelerate its path to profitability. The company, which had raised $300 million in funding, is also entering a partnership with rival Jiffy, which recently exited the grocery business.