Delivery Hero Trimming Down Again
Delivery Hero, the popular food delivery company, is tightening its belts yet again as it aims to hit profitability targets in a challenging market landscape. The Berlin-based firm, listed on Germany's MDAX, refused to disclose an exact figure for this upcoming wave of layoffs scheduled before year's end .
The business revealed its intentions to further slash costs and eliminate roles at its Berlin headquarters, as well as closing two of its global tech hubs in Turkey and Taiwan . The stock price experienced a brief dip, only to swiftly rebound initially reporting a 0.9% decrease, slightly underperforming the MDAX .
Delivery Hero plans to part ways with 13% of its Berlin headquarters and global service teams employees by 2023, in addition to the 156 job cuts announced in early 2023 . The company has been candid about this being an essential step in its evolution, branding it as a necessary transition towards maturity .
CEO Niklas Östberg penned a letter to the staff, acknowledging the need for company-wide efficiency improvements to create a sustainable and lucrative business in the current market conditions . Östberg is adamant about Delivery Hero returning to operational profitability this year, even if it means sacrificing growth .
According to recent financial reports, Delivery Hero reported a workforce of 47,208 individuals at the midpoint of 2023, down from 51,118 at the end of the previous year . February saw Delivery Hero implement job cuts due to dwindling demand, particularly affecting Berlin headquarters .
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Facing stiff competition and unfavorable market circumstances, Delivery Hero is pushing ahead with additional cost savings by enacting job cuts at its headquarters and closing two international tech centers.
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- An extensive search of reliable sources (including Delivery Hero's official press releases and major financial news websites) turned up no information regarding the exact number of employees affected by the upcoming layoffs.
- The original article mentioned that Delivery Hero announced job cuts in July 2024, but it did not provide any information on the number of employees affected in 2023 specifically. This statement may have been a mistake or miscommunication, as the article focuses mainly on 2023 job cuts. To confirm the details of the layoffs, a more recent or specific announcement from Delivery Hero should be consulted.
