UK food delivery company Deliveroo has announced that it will cut its workforce by 9% amid a decline in online orders.
The decision would see around 350 employees laid off, across all levels of the company and mostly in the UK, reported The Guardian.
Go deeper with GlobalData
However, Deliveroo founder and CEO Will Shu said that around 300 could be redeployed to new roles.
Shu said: “I’m sorry that we have to do this. Some of our close friends and talented colleagues will leave Deliveroo as part of this, and it pains me that we have to do it. I have been through one of these processes once before.
“I said then that it was the hardest thing I’d ever done, and this is just as bad. But however much it pains me, I know it’s nothing compared to how those impacted will be feeling. We will do everything to support you. I want to set out why we have taken this decision and what comes next.”
During the Covid-19 pandemic, the company increased its workforce rapidly, but now with the economic headwinds, the company intends to downsize its workforce.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataShu added: “The objective of the proposed changes is to deliver a permanent shift towards increased efficiency, reduced friction in our structures, and increased speed of decision-making to enable us to navigate an uncertain period and emerge in a stronger position.”
Last October, Deliveroo announced its decision to exit the Dutch market.
The company stated that it made the decision due to the belief that the necessary level of investment would be unbalanced with the unclear long-term potential returns.
Deliveroo also exited Australia last November due to challenging economic conditions.
