BERLIN (dpa-AFX) - Delivery Hero SE (DHER.DE DLVHF.OB), a German online food-delivery service provider, said on Monday that its Spanish courier startup Glovo is axing 6.5 percent jobs or around 250 staff.
The company has cited current macro economic conditions, rising interest rates and inflation, and lower consumer spending as the reasons for its latest cost cutting measures.
The company said the job cut particularly impacts its headquarters in Barcelona. The affected divisions include business support functions, data and recruitment. It added, 'No couriers, pickers or front-line employees will be affected.'
Óscar Pierre, CEO of Glovo, said: 'During each of the first three quarters of 2022, we beat our topline growth targets. These results got us optimistic about our forecasts for 2023. However, in October, we started seeing a slowdown in our topline yearly growth rates. Recently published results from other delivery companies also show a slowdown in demand in Q4, which confirms that external factors are impacting the performance of the industry.'
Looking ahead, the firm said that it still expects double-digit growth for 2023. However, it stressed the need of adjusting its annual forecast to reflect the new cost cutting measures.
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