(Bloomberg) -- Uber Technologies Inc. subsidiary Cornershop, an online grocer, is eliminating 11% of its workforce, according to an internal memo from Chief Executive Officer Oskar Hjertonsson.
The reduction in headcount affects about 250 employees at Cornershop, which operates primarily in Latin America and Canada, Hjertonsson said Thursday in his memo. The majority of job cuts are concentrated in Chile, a spokesperson for Uber said.
The news was first reported by Diario Financiero.
Uber first took a majority stake in the company in 2019 in a bid to extend its geographic reach and bolster profits by bundling food delivery with rides. Uber later bought the remaining shares in Cornershop in 2021 for about $1.4 billion.
“Since Uber and Cornershop joined forces, we have explored the best way to combine our people, expertise, and operations. We now expect to evolve this experience further by the end of the year, when the Cornershop app and brand will be fully merged into the Uber app,” the Uber spokesperson said. “Unfortunately, this means we had to take a hard look at roles that are no longer needed to achieve our global grocery and retail plan.”
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