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September 1, 2017 12:00 am

Postmates Lays Off All Its City Managers

According to TechCrunch, Postmates has let go of all of its city managers, as it centralizes some of its operations at its headquarters in San Francisco. "The total number of people affected by the move is 15 across markets like Boston, Denver, Las Vegas, Nashville, New York, Philadelphia, St Louis, San Diego, and Washington, DC," reports TechCrunch. From the report: In a statement, Postmates said that general managers will take on city managers' responsibilities. "Postmates has grown rapidly over the last six years -- and continues to grow in more than 200 cities across the U.S. As part of that growth, we've decided to centralize some of our regional marketing efforts within our San Francisco headquarters," a spokesperson said in the emailed statement. "Centralizing these functions will enable us to execute more quickly -- and ultimately help us be more nimble and effective as we continue to aggressively scale the company. Our general managers will remain in place and continue to help lead our local efforts. We are thankful to our city managers for all their hard work, and we're confident that they will be successful in their future endeavors." One of the tipsters, an ex-city manager, said that employees were taken by surprise: Postmates had just earlier this month organized a retreat for the city managers, which they saw as a team building exercise. The tipster also added that the murmurs were that the cost-cutting was being done "as a precursor to an acquisition," but Postmates' spokesperson denied that this is the case, and also ruled out a merger and fundraising as reasons for the cuts.

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