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Foodpanda owner Delivery Hero has laid off 156 employees, according to an internal email sent by current CEO Niklas Östberg. The move affected its central teams, which are primarily based in Berlin.
“Unfortunately, I believe that this decision is necessary to create a leaner and more efficient organization, capable of achieving the ambitious goals that we have set for ourselves in 2023,” Östberg wrote.
Those laid off will be given severance packages “above statutory requirements” and access to the Delivery Hero employee assistance program, among others. The firm last laid off an undisclosed number of staff in November 2022.
The food delivery firm has a presence in over 70 countries with over 50,000 global employees. Its website states that in the third quarter of last year, it reached 11.5 billion euros (US$12.5 billion) in gross merchandise value, marking a 12% year-on-year growth.
Regardless, Spain-based Glovo – which Delivery Hero acquired last year – laid off 250 employees or 6.5% of its workforce several days ago, Reuters reported. Most of those affected were based in Barcelona and were not front-line employees. Foodpanda also conducted a round of layoffs in September 2022.
Delivery Hero also operates Woowa Brothers in Vietnam and South Korea.
See also: Foodpanda grows revenue by 2.5x, but profit is still some distance away
Below is Östberg’s email to employees.
Currency converted from euros to US dollars: US$1 = 0.92 euros.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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