- The food delivery platform shuts tech hubs and reduces the Berlin workforce to boost efficiency.
- Delivery Hero seeks to achieve sustainable profits in a deteriorating economic environment.
- Its cuts mirror competitors taking decisive action to cut expenses without hindering long-term expansion.
Delivery Hero consolidates
Berlin-based food delivery platform Delivery Hero is shutting down its tech hubs in Istanbul and Taipei while reducing its Berlin workforce.
The moves come as part of efficiency initiatives “without compromising long-term growth potential,” CEO Niklas Östberg wrote in an internal email seen by Tech in Asia.
Profit is the guiding light
The company aims to build sustainable profitability for the delivery sector amid a worsening economic climate.
However, exact employee impact numbers weren’t disclosed. Delivery Hero operates in over 70 countries and has over 31,000 staff worldwide.
It’s also exploring selling its Southeast Asia business, including Foodpanda operations across 7 regional markets.
Leaner and more agile!
Last September, Delivery Hero cut Asian staff to “become leaner and more agile” operationally.
Severance packages, counseling, and mobility assistance will support all impacted employees.
But the tech hub closures and layoffs signal Delivery Hero following rivals in making decisive cuts to trim costs.
Despite the challenging industry outlook, Östberg stated the initiatives should position Delivery Hero for efficiency gains without sacrificing its long-term growth potential.
