Foodpanda lays off 15% of Hong Kong staff in bid to raise margins

Foodpanda riders in Hong Kong. Photo credit: Foodpanda Hong Kong

Rocket Internet portfolio company Foodpanda has laid off 15 percent of its workers in Hong Kong, according to a South China Morning post article this morning. The article says that the layoffs are part of an effort to re-gear the company’s strategy. Unnamed employees say that the efforts are being made to cut costs and “ensure that the company will become more profitable.”

Foodpanda’s Hong Kong chief executive officer, Alexander Roth, has confirmed the dismissal of about 18 employees. Layoffs were mostly from its operations and customer care side of the business.

The move will apparently boost margins. Hong Kong is an expensive city to operate in, though employment costs are among the world’s lowest for hourly and low-wage workers.

“Over the last year, we have continuously optimized our processes and built tech innovations which have automated our order processing, rider and restaurant management systems,” said Roth.

What do you think of this, and the recent spate of restructuring and layoffs in the tech industry? Drop a comment below!