Foodpanda Lays Off About 5% Of Singapore-Based Staff
Delivery platform foodpanda has reportedly laid off about 5% of its Singapore-based staff.
This works out to around 60 employees.
Though foodpanda did not confirm the exact number of retrenched staff, financial news website DealStreetAsia reported about the layoffs on 2 Sep, saying 5% of staff in Singapore were let go last week.
Layoffs due to profitability chase
According to a foodpanda spokesperson, the parent company, Delivery Hero, is moving to become profitable on an operational level.
As a result, it has made the “painful decision” to downsize some teams, they said.
However, it’ll be supporting employees in their transition. This will include employee assistance programmes, as well as extended insurance and benefits.
To our impacted colleagues – we are very sorry we let them down; we will forever be grateful for their contributions and dedication to foodpanda.
Teams based in other Southeast Asian countries were also affected — 20% of staff in the Philippines were reportedly let go, and an unnumbered amount in Thailand was cut too.
It is unclear exactly how many staff were retrenched as part of this exercise.
Delivery Hero broke even in Ebitda level in Q2 2022
Delivery Hero’s adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) for the financial year 2021 was -2.2%, according to a press release in February.
In another press release in July, for Q2 2022, its adjusted Ebitda level was at break-even.
It aims to hit positive levels this year, and layoffs are part of its strategy.
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Featured image by MS News.
