Delivery Hero, the German food-delivery company, has announced plans to cut more jobs by the end of the year as it strives to achieve its profitability goals in a challenging business environment.
To achieve this, Delivery Hero has decided to close its tech hubs in Turkey and Taiwan and discontinue certain support roles within its global teams. These measures will be in addition to the job cuts already implemented in Berlin earlier this year, which saw the elimination of over 150 positions. The company estimates that these actions will reduce its workforce at its Berlin headquarters and global service teams by approximately 13% by 2023. However, the exact number of employees affected has not been specified.
It’s important to note that Delivery Hero’s Spanish subsidiary, Glovo, is unaffected by these changes, according to a Glovo spokesman.
Delivery Hero’s CEO, Niklas Oestberg, highlighted the necessity of streamlining operations in order to establish a sustainable and profitable business amid the growing challenges within the industry.
The company aims to achieve a margin on adjusted earnings before interest, taxes, depreciation, and amortization based on gross merchandise value of more than 0.5% for the current year.