SINGAPORE: Deliveroo will lay off a portion of its global staff, with roles at all levels of the company affected.
According to a memo to employees seen by CNA, Deliveroo founder and chief executive Will Shu said that around 9 per cent of company's workforce is cut, while the actual number of staff laid off is estimated to be around 300 after the redeployments.
He said that Deliveroo grew its headcount very quickly in recent years due to the rise in demand for food delivery in the wake of the COVID-19 pandemic.
We are facing unforeseen economic headwinds due to the fact that we are facing serious economic headwinds. We have recently exited markets, so we do not need the same size workforce to support our operations, said Mr Shu.
Over the last year, the company, which competes with Just Eat Takeaway and Uber Eats, has exited the Netherlands and Australia, markets in which it struggled to become a market leader.
Our fixed cost case is too big for our business.
Mr Shu said that I should have had a more balanced approach to headcount growth but I thought that top-line growth would continue for longer than it has, because I thought top-line growth would continue for longer.
Under the layoffs, enhanced redundancy packages will be offered that go above government requirements and support that might include redeployment opportunities and outplacement.
The specifics will vary by market, but everyone who leaves us will be looked after, said Mr Shu.