“Necessary step”
Delivery Hero takes the red pencil again
December 18, 2023, 5:49 p.m
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The food supplier Delivery Hero is planning further layoffs shortly before the end of the year in order to achieve its profitability targets in the more difficult market environment. The Berlin MDAX group did not want to give an exact figure for this planned reduction.
The food supplier Delivery Hero is tightening its austerity measures and is planning further job cuts at its headquarters in Berlin. Two of the global tech hubs in Turkey and Taiwan are also to be closed, the company announced. The stock fell briefly, but quickly recovered. At 10 a.m. it was down 0.9 percent, slightly weaker than the MDAX.
How many employees will be affected has not been announced. Overall, Delivery Hero 2023 – together with the reduction of 156 jobs in Berlin announced in January – cut 13 percent of the jobs in the Berlin headquarters and in the global service teams, according to the announcement. 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 fell 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 improvements 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 staff levels or ceasing activities. We will continue to struggle with fierce market competition and macroeconomic factors.”
According to its financial report, at the end of the first half of the year, Delivero Hero employed 47,208 people, down from 51,118 at the end of 2022. The food supplier had already cut jobs in January due to weak demand. At that time, administrative jobs were cut, which also particularly affected the Berlin headquarters was. Östberg wants to bring the group into the operational profit zone over the course of the year and is accepting lower growth to achieve this.