Foodpanda, a regional food delivery provider, has announced another round of layoffs in the Asia-Pacific region as part of its ongoing efforts to streamline operations. The company, which has already undergone two previous rounds of layoffs in the past year, declined to disclose the exact number of affected staff but expressed its support for those impacted.
Foodpanda’s CEO, Jakob Angele, stated that the company’s main priority is to become leaner, more efficient, and agile. The affected staff will receive a severance package based on their length of service or aligned with statutory guidelines, along with garden leave, extended medical insurance, career advisory services, and other support measures. It is noteworthy that the company’s support for its affected employees is in line with or exceeds market standards.
This latest round of layoffs comes as foodpanda’s parent company, Delivery Hero, confirmed plans to sell the foodpanda business in several Asian countries, including Singapore, Cambodia, Laos, Malaysia, the Philippines, and Thailand. Reports suggest that ride-hailing and delivery giant Grab is interested in purchasing foodpanda’s business for over €1 billion ($1.45 billion).
The potential sale comes as Delivery Hero’s revenue share in Asia declined year-on-year in the second quarter of 2023. The company has been scaling back investments in the region to focus on profitability. Delivery Hero recently announced positive adjusted earnings before interest, taxes, depreciation, and amortization in the first half of 2023.
In response to these developments, foodpanda is carefully reviewing its organizational structure, considering clearer decision-making processes, reshuffling reporting lines for staff, and consolidating certain functions into a main regional team.
Foodpanda currently holds a 35% market share in the food delivery platform industry in Singapore, according to data platform Measurable AI. Grab, its main competitor, reportedly commands 56% of the market.
The layoffs and potential sale mark a crucial period for foodpanda as it strives to optimize its operations, maintain a competitive edge, and adapt to evolving market dynamics in the Asia-Pacific region.
