Foodpanda backed by Rocket Internet has announced a 15 percent reduction in its workforce.
“Over the last months, Foodpanda has introduced numerous features and technology components which have helped to automate over 98% of our orders. Unfortunately, this resulted in lesser manual interventions thereby leading to surplus manpower, which was not benefitting the business nor our people’s careers,” said Foodpanda spokesperson. Thus, it has laid off around 330 people from the company workforce of over 2,200 employees.
Redundancies will be made across a few departments, and affected employees will be provided with due remuneration as well as provided assistance to discover other job options, the company said.
Foodpanda said its customer-facing platform is not going to be affected because of the layoffs. According to the company, it has achieved positive unit economics across many cities and business segments in India while it is running profitable in other countries. “2016 will be the year wherein we are focused at providing value through delivering quality, reliability and seamless experience to our customers and partners,” Foodpanda said in a statement.
The company said that it had bolstered its leadership ranks, and had developed proprietary technological innovations in rider and restaurant management, with 10 times the growth in number of orders from January to December 2015.
“We are certain that the team will help in smoothening operations and take us through the next phase of growth,” said Foodpanda CEO Saurabh Kochhar.
In August, TinyOwl fired 160 employees and followed it by firing another 112 in November. Food discovery platform, Zomato also laid off around 300 employees in October. Bengaluru-based food aggregator delivery platform, Eatlo and Mumbai-based hyperlocal grocery platform, Localbanya, have also suspended their operations temporarily.