Foodpanda Cuts Asia-Pacific Staff Amid Pressure to Streamline Operations

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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.

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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.

Frequently Asked Questions (FAQs) Related to the Above News

How many rounds of layoffs has Foodpanda gone through in the past year?

Foodpanda has undergone two previous rounds of layoffs in the past year.

Is Foodpanda disclosing the exact number of affected staff in this round of layoffs?

No, Foodpanda has declined to disclose the exact number of affected staff.

What support measures will the affected staff receive?

The affected staff at Foodpanda will receive a severance package based on their length of service or aligned with statutory guidelines. They will also receive garden leave, extended medical insurance, career advisory services, and other support measures.

Why is Foodpanda implementing these layoffs?

Foodpanda's main priority is to become leaner, more efficient, and agile. The layoffs are part of the company's ongoing efforts to streamline operations.

Which countries does Delivery Hero plan to sell Foodpanda's business in?

Delivery Hero plans to sell Foodpanda's business in several Asian countries, including Singapore, Cambodia, Laos, Malaysia, the Philippines, and Thailand.

Who is interested in purchasing Foodpanda's business?

Grab, a ride-hailing and delivery giant, is reportedly interested in purchasing Foodpanda's business for over €1 billion ($1.45 billion).

Why is Delivery Hero selling Foodpanda's business in these countries?

Delivery Hero's revenue share in Asia declined year-on-year in the second quarter of 2023. As a result, the company has been scaling back investments in the region to focus on profitability.

What steps is Foodpanda taking to optimize its operations?

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.

What is Foodpanda's market share in the food delivery platform industry in Singapore?

According to data platform Measurable AI, Foodpanda currently holds a 35% market share in the food delivery platform industry in Singapore.

Who is Foodpanda's main competitor in the Singapore market?

Grab is Foodpanda's main competitor in the Singapore market, reportedly commanding 56% of the market share.

What are the goals for Foodpanda during this crucial period?

During this crucial period, Foodpanda aims to optimize its operations, maintain a competitive edge, and adapt to evolving market dynamics in the Asia-Pacific region.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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