Following its Tuesday announcement that it has expanded to more than 700 new cities in the U.S., food delivery service Postmates is reportedly laying off a number of employees as well as closing its office in Mexico City.

Employees at the Mexico City office were informed of the decision to close early on Tuesday, a spokesperson for Postmates confirmed in a statement to CNBC.

Sources for the news outlet said that other job cuts included several dozen employees at Postmates’ headquarters in San Francisco and offices in Los Angeles, Nashville, Tennessee, and other locations. The exact number of layoffs was not disclosed by the company.

“We made the difficult decision to end operations in Mexico City as we focus on our continued growth in the U.S.,” a Postmates representative said in an email to CNBC. “We continually review our business to ensure that staffing is aligned with current business needs and have made small adjustments as a result.”

The news of the layoffs comes after Postmates filed for an IPO with plans to go public in the second half of 2019. Back in September, the company has reportedly raised $225 million in financing from private equity firm GPI Capital.

One source for the news outlet also said that Postmates is in talks to find a possible buyer. The company has about 1,300 employees, and its food delivery services are now available in 4,200 cities – about 80% of U.S. households, it said.

Postmates
Postmates has laid off dozens of employees and closed its office in Mexico City. Close-up of sign for the popular app-based food and supplies deliver service Postmates, in the Gourmet Ghetto (North Shattuck) neighborhood of Berkeley, California, October 6, 2017. Getty Images/Smith Collection/Gado
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