UK meal delivery group Deliveroo to cut 9% of jobs

BRITISH meal delivery company Deliveroo said it would cut around 9 per cent of its workforce, or 350 roles, as it juggles its aim to become profitable while facing a slowdown in growth.

Deliveroo has been one of Britain’s most high profile success stories of recent years, riding the wave of the pandemic when people stuck at home ordered in more food, to grow quickly.

But founder and chief executive Will Shu warned on Thursday (Feb 9) that the economic situation was now tougher and the company needed to sharpen focus on profitability after breaking even in the second half of 2022.

“We now face serious and unforeseen economic headwinds,” he said in an online message.

“Quite bluntly, our fixed cost base is too big for our business.”

The company, which competes with Just Eat Takeaway and Uber Eats, has over the last year exited the Netherlands and Australia, markets in which it struggled to become a market leader.

Shu said he expected about 50 of the staff members affected would be redeployed. REUTERS