Travis Kalanick’s CSS, a ghost kitchen company, has cut staff as tech and real estate sectors adapt to a challenging market
Travis Kalanick (Uber founder) made headlines on Wednesday when his ghost kitchen company, City Storage Systems (CSS), announced a workforce reduction.
This move comes as companies across the tech and real estate sectors are reevaluating their staffing needs in response to challenging market conditions.
Before the layoffs, City Storage Systems employed over 4,300 individuals, making it a significant player in the industry.
Although the exact number of employees affected by the workforce reduction was not immediately clear, CSS informed its staff about the situation by sending out invitations for meetings with the HR department.
Additionally, an all-hands meeting was scheduled for the afternoon, which two anonymous employees confirmed to Insider.
Travis Kalanick’s CSS aims to revolutionize the food industry, much like he transformed the global taxi industry with the founding of Uber.
The company operates various units, including CloudKitchens, which repurposes warehouses in the United States and Canada into ghost kitchen facilities catering to both small-scale restaurateurs and large enterprises like Chick-fil-A.
Another branch, known as Otter, specializes in creating software solutions for ghost kitchens and traditional restaurants. In a remarkable achievement, Kalanick secured $850 million in funding for CSS in the fall of 2021, valuing the company at an impressive $15 billion.
The decision to reduce its workforce comes at a challenging time for companies operating in the tech and real estate sectors. These industries are grappling with factors such as inflation, higher interest rates, and various economic headwinds, making it necessary for organizations to make strategic adjustments to remain competitive and sustainable.
As of now, a CloudKitchens spokesperson has not provided a statement in response to inquiries regarding the layoffs.
