Foodpanda, the Singapore-based food delivery service has announced a new round of job cuts. With this move the company aims to maintain a higher level of agility, achieving optimal operational framework.
The company conveyed the decision to the employees in an official letter. The letter emphasised the company’s current primary focus is on achieving greater efficiency, agility and leaner operations. Furthermore, it needs to streamline the processes in order to adopt a more organised approach in the future.
This round of layoffs will encompass a review of the organisational structure within both regional and national teams. Additionally, it will also include the reassignment of certain functional reporting lines to different leaders to enhance consistency and concentration.
The letter didn’t specify the quantity of employees affected. However, this round of layoffs marks the company’s third instance of staff reductions. The company implemented two rounds of job cuts in February and September of the preceding year due to broader economic challenges, as reported by the media.
The current job cuts coincide with Delivery Hero, Foodpanda’s parent company, engaging in initial talks with prospective purchasers regarding the sale of a portion of its Southeast Asian food- delivery division.
A report by the German media outlet, WirtschaftsWoche, revealed that Delivery Hero is in the process of divesting its operations under the Foodpanda brand in Singapore, Cambodia, Malaysia, Myanmar, the Philippines, Thailand and Laos.
The reports suggest that the delivery company’s competitor, Grab, could potentially be interested in acquiring Food Panda.