Deliveroo could make around 350 jobs redundant
Deliveroo founder and chief executive Will Shu has said the food delivery company is starting a redundancy process which could see around 9% of the company's workforce, approximately 350 roles, made redundant.
The actual number of redundancies is expected to be closer to 300 with redeployments, and roles at all levels of the company will be impacted. A collective consultation process on its redundancy proposals will take place in the UK.
Shu said those impacted would be offered enhanced redundancy packages above government requirements, with redeployment and outplacement opportunities available.
He said Deliveroo's fixed cost base was "too big" following the expansion of its team in response to high demand during the pandemic. In contrast, the group has this year been affected by economic headwinds, including inflated food and energy costs, and having recently exited markets including Australia, it did not require the same size workforce to support operations.
"This is my responsibility. I should have had a more balanced approach to headcount growth, but I thought stronger top-line growth would continue for longer than it has. I did not anticipate so many macro headwinds arriving all at once. This is on me, and I will not be making the same mistakes going forward," said Shu.
"We remain focused on delivering the best proposition for our customers, partners and riders, but we need to right size the business for the opportunities and challenges ahead. This is not about individuals. We have had to consider the best structure for the business in this new context."
Deliveroo pulled out of the Australian market last year and put its local business into voluntary administration, around the same time that it pulled out of the Netherlands, while consumer headwinds have hit growth at the company post-pandemic.
Photo: Shutterstock
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