Drizly, an online alcohol delivery platform that was acquired by Uber in 2021 for $1.1 billion, has announced that it will be cutting around 100 jobs as part of its integration into Uber.
In a statement, the company acknowledged the “difficult decision” to reduce its team by approximately 100 roles, but clarified that this was a strategic move to centralize operations and align the company’s vision with Uber’s.
Drizly emphasized that the layoffs are part of a broader corporate restructure aimed at securing the future of the company and laying a foundation for the long-term success of both brands. The company has committed to providing six weeks of paid administrative leave, four weeks of severance pay, and an additional two weeks of severance pay for every year of service with Drizly.
In addition to its recent layoffs, Drizly had undergone a brand direction and purpose revamp to mark its 10th anniversary in November 2022. As part of this revamp, the company redesigned its product experience and expanded its shipping capabilities. It also added several new features to its platform, such as new advertising tools for brands and an online drinks magazine called The Stir.
The layoffs reportedly affected employees across the company, including Drizly Content Producer Jeremy Glass, who helped launch The Stir. In a now-deleted Twitter post, Glass described the job cuts as a “layoff tidal wave.”
Blaine Grinna, Drizly’s Senior Director of retail ops said,“As we continue to build the best shopping experience for beverage alcohol, teaming up with Gopuff is our next step in offering consumers convenient delivery options for drinks.
She added, “Drizly’s infrastructure for alcohol e-commerce coupled with Gopuff’s network of commerce locations will extend the ease of on-demand delivery of beer, wine and spirits nationwide and help even more customers of legal drinking age shop the best drinks for the moment.”
The merger of Drizly and Uber’s resources also raised concerns about competition in the online alcohol and grocery delivery sector. After the acquisition, Uber announced a partnership with Gopuff, an on-demand grocery delivery retailer, which drew scrutiny from the US Federal Trade Commission (FTC).
However, no further updates were given on this matter, and Uber proceeded to merge the resources of the two companies, adding Gopuff’s warehouses and physical liquor retailers to Drizly’s offer in 26 states.
