The delivery platform takes steps to reduce costs amid a shift towards becoming EBITDA-positive.
SINGAPORE: Foodpanda has laid off several employees in Singapore as part of a strategic move to cut costs and achieve profitability. The delivery platform cited a “critical need” to streamline operations to remain competitive in the market.
In response to queries from CNA on Wednesday (Sept 7), Foodpanda indicated that its parent company, Delivery Hero, aims to reach EBITDA-positive status, signifying profitability at the operational level. As a result, the company has made the “painful decision to downsize certain teams.”
A spokesperson for Foodpanda did not disclose the exact number of employees affected by the layoffs or the specific roles involved. However, tech news outlet DealStreetAsia reported that approximately 5% of the Singapore-based team had been retrenched.
The report also mentioned that Foodpanda’s Asia Pacific CEO, Jackob Sebastian Angele, addressed employees in July, acknowledging that the business was underperforming and preparing staff for impending cost-cutting measures.
In its official statement, Foodpanda expressed its commitment to supporting affected employees during this transition, offering assistance programs and extended insurance and benefits. “To our impacted colleagues – we are truly sorry for letting them down. We are forever grateful for their contributions and dedication to Foodpanda,” the statement read.
Currently, Foodpanda operates in 11 markets throughout Asia. The DealStreetAsia report further noted that about 150 employees, or 20% of the staff in the Philippines, were also laid off. Additionally, sources in Thailand indicated that Foodpanda’s Thai managing director announced job cuts to the local team that week.
These job cuts come less than two months after Foodpanda established its regional headquarters in Singapore on Robinson Road. The company also launched a tech academy that offers over 200 courses in areas like finance and digital skills, available for free or at discounted rates for riders.
Berlin-based Delivery Hero operates in roughly 50 countries across Asia, Europe, Latin America, the Middle East, and North Africa. Last year, it announced plans to downsize operations in Germany and divest its Foodpanda Japan business. According to a statement on the company’s website, these decisions were made to “reallocate resources to highly attractive growth opportunities in other markets and new verticals,” including quick commerce.
