Cash-strapped Chinese grocery startup announces layoffs

China-based grocery startup Missfresh is scrambling to “maximize profitability” by taking a series of drastic measures, including shutting down its core 30-minute home delivery service and laying off staff, TechNode reported.

Missfresh reportedly told a local publication that it had “temporality” suspended the fast-delivery service but is running the second-day delivery services. It will also continue to operate its retail cloud unit. It said the layoffs were part of its business adjustments.

The grocery startup also halted paying salaries to its employees as the company has run out of cash, Financial Times reported.

The eight-year-old Missfresh raised US$273 million from its Nasdaq listing in June 2021. Its shares, however, fell 29% on the first day to close at US$9.6. On July 29, the stock price was had declined more than 98% to $0.14 apiece.

See also: Tracking layoffs across Asia’s startup ecosystem (Updated)