Foodpanda Layoff Asia Pacific Today, said “We are extremely sorry”

Foodpanda Layoff Asia Pacific Today, said “We are extremely sorry”

Foodpanda, a regional meal delivery service, laid off an unspecified number of Asia-Pacific employees on Friday (Sept. 22), despite having already gone through at least two rounds of layoffs in the previous year.

In response to inquiries from The Straits Times, a foodpanda spokeswoman stated, “In the days and weeks to come, our focus is on supporting impacted colleagues through this difficult time.”

The representative would only add that “We are deeply sorry to colleagues who are leaving us and are grateful for their contributions to foodpanda,” declining to indicate how many employees in Singapore or the Asia-Pacific region were impacted.

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In February 2023 and September 2022, the corporation reduced its workforce.

Foodpanda CEO Jakob Angele stated that the company’s current goal is to “become leaner, more efficient, and even more agile” in an e-mail note obtained by ST.

Angele, who started in his current position in 2017, also described the assistance provided to the impacted employees, claiming that it is at least on level with or superior to market standards.

Each employee receives a severance compensation depending on length of service, in accordance with country laws, or both, as well as a garden leave with full pay and benefits.

Additional types of assistance included a waiver of the minimum time requirement for stock option vesting as well as additional medical insurance, career counselling services, the ability to cash in any unused or accrued annual leave.

The Government, companies, and unions collectively issued an advice on managing excess manpower and responsible retrenchment. The advise states that the standard practise for retrenchment benefits is a payout of between two weeks’ and one month’s salary for each year of service.

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Delivery Hero’s decision to sell off Foodpanda operations in multiple Asian countries

Following the parent company of foodpanda, Delivery Hero, which has offices in Berlin, confirming plans to sell its foodpanda operations in Singapore, Cambodia, Laos, Malaysia, the Philippines, and Thailand, comes the most recent round of layoffs.

According to German business magazine Wirtschaftswoche on Wednesday, ride-hailing and delivery giant Grab is apparently interested and willing to spend more than €1 billion (S$1.45 billion) for the acquisition.

The probable sale would occur as Delivery Hero’s business in Asia had its revenue share decrease year over year in the second quarter of 2023 as the company reduced its spending there in an effort to turn a profit.

Following a loss of €323 million in the same period the previous year, Delivery Hero reported that it achieved a positive adjusted earnings before interest, taxes, depreciation, and amortisation for the first half of 2023. It didn’t specify how much money it made.

In his message, Angele stated that foodpanda is carefully assessing its organisational structure across both regional and country teams to facilitate clearer decision-making. He also stated that foodpanda is rearranging the leaders to whom staff members report and combining some responsibilities under a core regional team.

Foodpanda holds 35% of the Singapore food delivery platform market, according to data platform Measurable AI, while Grab holds 56% of the market.

The company reported having 1,200 employees in Singapore as of July 2022.

It is unknown how the most recent changes, including the prospective sale of the Singapore operations, will effect Foodpanda’s delivery partners.

Yeo Wan Ling, a Labour MP, told ST that the delivery and driver platform industry appears to be headed for more consolidation, which puts the self-employed people who rely on such platforms for income — in some cases, their only source of income — in a vulnerable position. Yeo Wan Ling is an advisor to the National Delivery Champions Association, which represents delivery workers.

She claimed that because they are not salaried workers, they are not eligible for layoff compensation if a platform is shut down.

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Image credit: Facebook/Thefoodpanda

Source: Aisaone

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