Delivery Hero is cutting back again
The food delivery company Delivery Hero is planning further redundancies shortly before the end of the year in order to achieve its profitability targets in a difficult market environment. The Berlin-based MDAX-listed company did not want to give an exact figure for this planned reduction.
The food delivery company Delivery Hero is intensifying its cost-cutting measures and is planning further job cuts at its headquarters in Berlin. Two of its global tech hubs in Turkey and Taiwan are also to be closed, the company announced. The share price fell briefly, but quickly recovered. At 10 a.m., it was down 0.9 percent, slightly weaker than the MDAX.
It was not disclosed how many employees will be affected. In total, Delivery Hero will have cut 13 percent of jobs at its Berlin headquarters and in its global service teams by 2023 - together with the 156 job cuts in Berlin announced in January. Delivery Hero spoke of a "necessary step" in the transition to the next phase of maturity for the company, which was founded in 2011. This year, the number of employees at the Berlin headquarters and in the global service areas has fallen by around 13 percent.
"In order to build an economically sustainable and profitable business in an environment that has become more difficult for our industry, we had to achieve efficiency gains throughout the company," said CEO Niklas Östberg in a letter to the workforce. "As we have already seen in recent years, this sometimes means relocating functions, adjusting headcount or discontinuing activities. We will continue to struggle with the tough competition in the market and macroeconomic factors."
According to its financial report, Delivero Hero employed 47,208 people at the end of the first half of the year, down from 51,118 at the end of 2022. The food delivery company had already made job cuts in January due to weakening demand, with administrative jobs being cut at the time, which also particularly affected the Berlin headquarters. Östberg wants to return the Group to operational profitability over the course of the year and is willing to accept lower growth to achieve this.
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Delivery Hero is actively seeking to reduce costs further by implementing additional job cuts at its headquarters and closing two global tech hubs. Despite the planned redundancies, Delivery Hero's CEO, Niklas Östberg, remains committed to returning the company to operational profitability this year.
Source: www.ntv.de
