Singapore-based Foodpanda has laid off some of its employees in Southeast Asia as its parent firm Delivery Hero works to become EBITDA-positive by reducing costs and moving towards profitability.
Foodpanda launches 150th Pandamart store / Photo credit: Foodpanda
“We have made the painful decision to downsize some teams. We are supporting impacted employees to help them through this transition, through employee assistance programs and extended insurance and benefits. To our impacted colleagues – we are sorry we let them down; we will forever be grateful for their contributions and dedication to Foodpanda,” a Foodpanda representative told Tech in Asia.
However, the food delivery platform didn’t divulge the number of staff who were terminated or shared details about the teams and countries affected by the job cuts.
In the second quarter of this year, Berlin-headquartered Delivery Hero posted around US$2.1 billion in revenue, a 38% jump compared to the same period in 2021. It hit adjusted EBITDA break-even in May and June 2022 for its platform business, which includes Foodpanda’s operations in Asia.
At that time, Delivery Hero said that it could achieve positive EBITDA due to rationalization in marketing and incentive spending. It aims to hit break-even again in adjusted EBITDA by Q3 this year and to generate over US$40 million in adjusted EBITDA in Q4 2022.
Foodpanda’s Singapore business has seen good growth in revenues and lower operating loss since 2019, according to VentureCap Insights.
Founded in 2012, Foodpanda operates in 400 cities across 11 countries. In July, the company opened a regional headquarters in Singapore that houses 1,200 employees.
See also: Foodpanda grows revenue by 2.5x, but profit is still some distance away
Editing by Collin Furtado and Eileen C. Ang
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