Spain's delivery service provider, Glovo, is cutting 250 jobs globally, as the COVID-19 pandemic continues to take its toll on the company. The layoffs, which will mostly affect Glovo's Barcelona office, represent a 6.5% reduction in the company's global workforce.
In a statement, Chief Executive Oscar Pierre said, "The layoff decision largely impacts the company’s headquarters in Barcelona in areas such as business support functions, recruitment and data."
Glovo, which is part of Germany's Delivery Hero, was founded in 2015 and has experienced rapid growth which it says has seen its team size grow 40% year on year, to 3,900 people today. However, this growth has created operational inefficiencies, which the company is now looking to address.
The company said it will also reduce “non-headcount-related operational expenses” and will only be hiring for “business-critical roles through the first half of 2023.” In the fourth quarter of 2022, the company experienced a slump in demand, showing that external factors are affecting the delivery industry's performance.
The COVID-19 pandemic has had a significant impact on the delivery industry. The current macroeconomic situation, with rising interest rates and inflation, has lowered the purchasing power of consumers, and many choose to order less often. However, Glovo's CEO says that the company's vision and strategy have not changed. No couriers, pickers or front-line employees will be affected by the job cuts.