'We are very sorry we let them down': Foodpanda lays off some staff in Singapore to reduce costs, remain competitive
Foodpanda has about 37 per cent of the market share in the food delivery sector in Singapore.
PHOTO: The Straits Times file
PUBLISHED ONSeptember 07, 2022 5:17 AMByCheryl Tan
SINGAPORE - Food delivery company Foodpanda has reportedly laid off 5 per cent of its 1,200 staff in Singapore in a bid to remain competitive, just months after it launched its regional headquarters in Singapore.
This works out to be about 60 employees.
The company spokesman said in response to media queries that its German parent company - Delivery Hero - has a clear objective to become Ebitda-positive, which refers to the profitability of a company's core operations.
Hence the "critical need" to reduce costs and make a profit to remain competitive, he added.
According to annual reports, Delivery Hero's Ebitda (earnings before interest, taxes, depreciation and amortisation) losses swelled to US$888.8 million (S$1.25 billion) in 2021, though the company was at adjusted breakeven point in the second quarter of this year.
Foodpanda designated Singapore as its regional headquarters and global tech hub in July with an office in Robinson Road.
The company did not respond to questions on how many people were retrenched in Singapore, as well as the roles and the demographics of those who were affected.
The job cuts were reported on Sept 2 by tech news outlet DealStreetAsia. According to the report, its sources said Foodpanda let go of 5 per cent of its Singapore-based regional team last week. The company also reportedly announced that it will axe 150 staff, or 20 per cent of its headcount, in the Philippines, in addition to job cuts in Thailand.
However, a check by The Straits Times on LinkedIn showed that Foodpanda is still hiring for roles in marketing and media, as well as offering internships.
Foodpanda said that it made the "painful decision to downsize some teams" and that it is supporting employees to help them through this transition, through employee assistance programmes and extended insurance and benefits.
"To our impacted colleagues - we are very sorry we let them down; we will forever be grateful for their contributions and dedication to Foodpanda," said its spokesman.
Foodpanda has about 37 per cent of the market share in the food delivery sector in Singapore, and had more than 10,000 delivery workers here on its platform at the start of last year. The other major player Grab has more than 50 per cent of the market share.
This article was first published in The Straits Times. Permission required for reproduction.
