According to The Philadelphia Inquirer, GoPuff has announced the preventative measures it will be taking in preparation for what officials call “could be a much more significant macroeconomic turndown.” These measures include laying off 1,500 employees and closing 76 distribution centers.

In a memo shared with GoPuff employees, the company announced that it will also be reducing its global workforce by 10%.

GoPuff, like other delivery services during the pandemic, saw much higher sales in 2020 and 2021 as consumers were looking for alternatives to in-store shopping and potential exposure to the virus. Since people started returning to stores, GoPuff has attempted to keep revenues rising via sales partnerships and online specials.

The company has noted that it is profitable in major markets on an operating basis, not counting financial costs. However, GoPuff is a private company and does not need to release financial results, unlike Uber and DoorDash who have lost more than half of their stock market value since January 1.

GoPuff has plans to gear its focus on larger communities rather than markets that see less business as the company hopes to keeps customer losses to just 5%.

In a memo shared with investors, the company noted that if this is done successfully, it would boost sales per worker and profits from operations.

“We built this company focusing on profitability first,” Gopuff said in a statement, noting that it expects to continue operating “from a position of strength,” even after closing 76 distribution centers and laying off 1,500 employees.