Skip the Dishes had already reduced its workforce by 350 in 2022. Credit: The Bold Bureau /Shutterstock.

Prominent food delivery service Skip The Dishes and its parent company, Just Eat Takeaway.com, have announced a significant workforce reduction in Canada, impacting 800 employees.

Its CEO, Paul Burns, revealed the layoffs in a LinkedIn post, stating that the decision is pivotal for ensuring sustainable growth and a more focused approach to serving customers and stakeholders.

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The layoffs will affect 100 Canada-based employees of Skip The Dishes and 700 operations employees based in the country working for Just Eat Takeaway.com.

“Decisions that impact people’s jobs are never simple or easy. However, the measures we took are necessary to ensure we have the right resources and organisational structure in place to drive sustainable growth,” Burns explained.

The workforce reduction comes after a year of leadership under Burns, who previously managed Twitter Canada. Skip The Dishes has experienced significant changes, including a merger and navigating the challenges of a health crisis, as reported by CBC.

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Founded in 2012 and headquartered in Winnipeg, Skip The Dishes was acquired by Just Eat in December 2016 for $110m, and merged with Takeaway.com in 2020.

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The Covid-19 pandemic, which prompted lockdowns and home confinements, initially boosted demand for food delivery services. However, with the lifting of pandemic restrictions, rising inflation and interest rates have led consumers to seek ways to cut back on spending.

In 2022, following a comprehensive review aimed at fostering sustainable growth, Skip The Dishes reduced its workforce by 350, primarily cutting remote contact centre roles.

Statistics Canada reports that food services have been a significant driver of inflation in 2023/24, with prices rising by 3.8% since July 2023.

Grocery store prices have increased by approximately 2% over the same period.

In early 2024, Reuters reported that Just Eat Takeaway announced the closure of its in-house delivery service in Paris, France.