Instacart to Slow Hiring to Focus on Profitability Ahead of IPO

As it prepares for an initial public offering, the startup is planning to slow the pace of hiring.

The company hired more than 1,500 people over the last year and nearly doubled the size of its engineering teams.

The delivery startup is one of a number of tech companies that are easing the pace of hiring and lowering their costs due to concerns of a slowing US economy and global uncertainty. The ride-sharing giant will treat hiring as a privilege going forward, according to a letter written by its chief executive officer.

During the delivery boom of the Pandemic, growth of Instacart decelerated. In March, the company's valuation was slashed by 40% to $24 billion. The case for a long and drawn-out recession has been laid out by a venture capital firm, which warned startup founders to look for ways to conserve cash.

Instacart filed for an IPO earlier this month. The timing could slip, though a listing could happen as soon as this year.

With help from Crystal Tse andJackie Davalos.