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Delivery Hero announces new layoffs


The delivery company Delivery Hero has been struggling with difficult market conditions for months. According to SPIEGEL information, the start-up is now laying off more than four percent of its workforce – mainly in Berlin.

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Delivery Hero boss Niklas Östberg: "Making such a decision is the most difficult part of my job"


Delivery Hero / dpa

According to SPIEGEL information, the Berlin delivery service Delivery Hero is laying off more than four percent of its workforce.

After careful consideration, the decision was made in order to achieve the “ambitious goals” that the company had set for 2023.

The goal is a "leaner and more efficient organization," according to an internal email from Delivery Hero boss Niklas Östberg, which SPIEGEL has seen.

The delivery service has announced that it will make a profit for the first time in 2023.

According to internal communications, 156 people are affected by the layoffs, most of them in Berlin, where Delivery Hero has its headquarters.

The company laid off a “small percentage” of its more than 49,000 employees there last November.

In addition to the legal department, the finance and marketing departments were also affected - these parts of the company are to be spared in the most recent round of layoffs.

Hundreds of layoffs in Spain

In his email, Östberg also explains why the layoffs were not announced in November.

At the time, many employees had assumed that the current size of the workforce would remain, at least in the medium term.

"The short answer is that we needed more time to evaluate all posts and departments outside of those affected at the time," Östberg writes.

The Delivery Hero boss now announces “generous” severance payments and support in the search for new jobs to the employees.

"I understand this is a difficult time for everyone, so please take care of yourself and others as we navigate this difficult situation together."

Like other services, Delivery Hero was a big winner of the corona pandemic and, thanks to a favorable market environment, was able to write losses in the billions during the growth phase.

Östberg has been trying for months to lead the company into the profit zone.

The Spanish delivery service Glovo, a subsidiary of Delivery Hero, has also announced that it will cut around 250 jobs.

The company headquarters in Barcelona is particularly affected.

Source: spiegel

All business articles on 2023-01-30

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