Deliveroo is set to begin a redundancy process across the entire company, which will result in job cuts to around 9% of employees.
While the food delivery service has warned that 350 staff could be affected by this process, it expects closer to 300 with redeployments, however has confirmed that all levels of the business will be impacted.
“I’m sorry that we have to do this. Some of our close friends and talented colleagues will leave Deliveroo as part of this and it pains me that we have to do it,” Deliveroo CEO and founder, Will Shu said.
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This comes as Deliveroo looks to make progress on its “path to profitability,” while working in a “difficult consumer environment,” with high inflation, rising interest rates and the energy crisis.
In a company update, Shu said in order to that to withstand these challenges, Deliveroo has to run in “the most efficient way possible.”
“In recent years we grew our headcount very quickly. This was a response to unprecedented growth rates supported by Covid-related tailwinds. By contrast, we now face serious and unforeseen economic headwinds.
“We have also recently exited markets, meaning we do not require the same size workforce to support our operations. Quite bluntly, our fixed cost base is too big for our business.”
He added that looking ahead, Deliveroo’s objective is to “deliver a permanent shift towards increased efficiency, reduced friction in our structures and increased speed of decision-making.”
Deliveroo will be going through a collective consultation process on its redundancy proposals, offering everyone impacted with an enhanced redundancy package which it claims will “go above government requirements and support.”
