Postmates cuts dozens of jobs and closes Mexico City office

Postmates have been forced to lay off dozens of employees and close it's Mexico City office.

Despite filing paperwork for an IPO, investors have backed off after noting the struggles of Uber and Lyft.

Postmates raised $225 million from a private equity firm in September.

Postmates, the food-delivery start-up competes with Uber and GrubHub and has laid off dozens of employees and shut down it's Mexico City office according to CNBC.

Despite filing paperwork to join IPOs this year, the market rapidly shifted after noting the struggles of Uber and Lyft. Layoffs began this week according to sources.

CNBC confirmed that layoffs locations included San Francisco, Los Angeles, Nashville, Tennessee, among other offices. Mexico City staff were notified on Tuesday about the office closure.