Deliveroo lays off 25% of Singapore staff amid Covid-19 economic downturn

DELIVEROO is laying off a quarter of its employees in Singapore as the global health crisis and economic downturn continue to impact its business.

This comes after its top executive in Singapore, Siddharth Shanker, left the company to pursue other opportunities, though The Business Times (BT) understands the departure was unrelated to Covid-19.

A total of 20 out of 80 Singapore staff will be affected by the headcount reduction, as part of a global cut that will hit more than 300 workers in several countries. Some employees will also be put on furlough.

The compensation package offered to retrenched employees comprises a minimum of 12 weeks' salary, inclusive of notice-period pay, sources said.

Deliveroo is also offering third-party support to help the affected staff find work, while opportunities for alternative roles within the company will be available, BT understands.

"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. This requires us to look at how we operate in order to reduce long-term costs," a Deliveroo spokesman told BT in a statement.

Separately, the spokesman confirmed that general manager Mr Shanker has left the company. Growth and marketing director Sarah Tan stepped in as interim general manager in early April as the food delivery firm faces a stress test during the Covid-19 pandemic.

"In the three years since taking over Deliveroo in Singapore, Siddharth has helped scale the business and build it into one of the most well-loved brands locally. Everyone at Deliveroo is extremely grateful for his hard work and wishes him well for the future as he moves on to pursue new opportunities," the spokesman said.

Mr Shanker was formerly Uber's senior general manager in India from December 2013 to August 2016, according to his LinkedIn profile. Before that, he spent five years at investment bank Barclays, with roles including foreign exchange sales, covering hedge funds.

His departure and the layoffs come as Deliveroo's business is being tested by the surge in demand for delivery services amid Singapore's partial lockdown measures.

BT also understands from sources that the Singapore office has been undergoing significant restructuring even before the pandemic, though this is typical of a high-growth firm backed by venture capital.

Deliveroo confirmed to BT in November last year that there have been changes to the performance marketing function, resulting in some job cuts. BT understands that the head of performance marketing for the Asia-Pacific and Middle East, based in Singapore, was laid off as well.

As a whole, the loss-making London-based company is also anxiously awaiting a cash injection from Amazon worth hundreds of millions of dollars. It told the UK's competition watchdog, which is investigating the deal, that it needs the investment or it would fail and exit the market following the impact of Covid-19.