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Glovo adds to the cuts and will lay off 250 employees, 6.5% of the team

Date: March 29, 2024 Time: 02:02:08

Glovo joins the wave of layoffs in the technology sector. The food delivery company has announced today to its staff that it will lay off some 250 employees in the coming weeks, 6.5% of the total. The workers at the headquarters in Barcelona will be affected mainly and, especially, in areas such as recruitment or ‘big data’. “This was not on our planes six months ago,” said the CEO, Óscar Pierre. The pressure due to the heavy losses of his business has not ceased since the purchase by Delivery Hero.

Pierre explained to the company in a statement this Monday that they have tried to avoid layoffs at all costs “by evaluating various scenarios, reducing costs and improving ‘unit economics’ over the last nine months.” But that pressure on the accounts has led them to take out the scissors and join other startups that have already done so in recent weeks such as Typeform (25% of the total workforce), Lookiero or Devo.

The layoffs will logically focus on the company’s headquarters in Barcelona, ​​where the horrible team is (although it has teams in 25 countries). The areas with the biggest cuts will be business support, recruitment and ‘big data’. According to them, the ‘riders’ and the employees of the ghost supermarkets that are spread over several cities will not be affected. The latter have workers’ representation through a company committee.

The CEO insists that double and triple digit growth in revenue in recent years has meant scaling the team as quickly as possible. “Our rapid growth created inefficiencies in our operations,” he justifies. In this sense, the company’s forecast was to analyze the adjustments by department more carefully, but the slowdown in the food delivery business has precipitated planes. “In October we started to see a slowdown in our annual growth rates,” he adds.

The company has had to adjust its forecasts for this year 2023 downwards, “to reflect the new reality”. In the third quarter of the year, just before that month of October, the growth of gross billing on the platform (on which its commissions are calculated) was 40%, according to the public accounts made by its own owners. For the entire year 2022, they expected prepared gross operating losses (Ebitda) of 300 million euros.

Those losses had put pressure on Delivery Hero accounts in recent quarters. Analysts had raised the need to bring the profitability of the Spanish startup business closer. There are still no forecasts for the ‘red numbers’ for this year 2023, but with these relevant job cuts they will try to reduce them.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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