Deliveroo to slash 367 jobs and furlough 50 more as it struggles amid lockdown

Deliveroo is set to slash around 15 per cent of its work force leading to hundreds of redundancies as it struggles to operate during the pandemic.

The UK delivery start-up confirmed that it is being forced to axe 367 staff and furlough a further 50, accounting for around 15 per cent of its 2500-strong workforce.

The cuts, first reported by The Telegraph, are reportedly a response to the “extraordinary global health crisis” and come just over a week after Amazon’s £400 million investment in Deliveroo was approved by the UK’s competition watchdog.

It is not yet clear which roles are set to be axed or which of Deliveroo’s 13 markets will be hardest hit.

READ MORE: CMA provisionally clears Amazon’s £400m Deliveroo investment

“The extraordinary global health crisis we are living through has impacted nearly all businesses,” a spokesperson said.

“As a result, like so many others, Deliveroo has had to examine how to overcome the challenges we all face, as well as ensure we are in the strongest position possible following the crisis,” the spokesman said in a statement.

“This requires us to look at how we operate in order to reduce long-term costs, which sadly means some roles are at risk of redundancy and others will be put on furlough. This has been extremely difficult for everyone at the company, and our absolute priority is to make sure those who are impacted are fully supported.”

Amazon’s investment in Deliveroo was largely approved by the Competition and Markets Authority (CMA) over fears that without the investment Deliveroo could collapse.

At the time, the CMA said: “While Deliveroo has sought to expand its supply of convenience groceries during the crisis, these sales are limited and have not made up for losses in its restaurants business.

“As a result, Deliveroo recently informed the CMA that the impact of the coronavirus pandemic on its business meant that it would fail financially and exit the market without the Amazon investment.”

Delivery / Supply ChainNews


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