You are here: Home » Companies » News
Business Standard

After Zomato & TinyOwl, Foodpanda to lay off staff

Online food ordering service firm will lay off 300 or 15% of strength

BS Reporter  |  Bengaluru 

Online food-ordering site Foodpanda lays off  300 employees in India

Online food ordering service Foodpanda’s India unit will dismiss about 300 people. With this, the Rocket Internet-backed firm has joined rivals Zomato and TinyOwl in scaling down business. Swiggy, on the other hand, is expanding its operations.

The layoffs at Foodpanda, confirmed by chief executive Saurabh Kochhar, will see the company lose close to 15 per cent of staff from across business segments. The layoffs will be restricted to the Indian business.

“While we continued to invest in processes and technology, we also had to take some difficult decisions but believe them to be necessary on our path to become sustainable and profitable within the targeted timeline,” Kochhar said.

The company claims the layoffs were triggered due to “a 98 per cent automation rate in order processing”.

This means, it needs fewer staffers to handle the same amount of orders.

The biggest chunk of layoffs, 250 employees, came from shutting down of an in-house call centre.

Foodpanda has become the latest in a wave of downsizing that has hit the Indian online food ordering and delivery

Citing high expenditure, investors have cracked down on spending huge amounts on marketing, offering cash discounts and hoarding top-rated talent.

In September, TinyOwl had laid off nearly 100 employees from its Mumbai and Pune offices.

In October, Zomato had let go of close to 300 employees, followed by chief executive officer Deepinder Goyal, sending out an e-mail to employees complaining of low sales effectiveness and that the company would miss its annual revenue targets.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 31 2015. 00:26 IST