Food delivery company foodpanda has reportedly retrenched 60 employees in Singapore -- some 5 per cent of its 1,200 staff here.
This comes less than two months after it launched its regional headquarters at Robinson Road.
Trying to be profitable
The company spokesperson told CNA and ST that its German parent company, Delivery Hero, is aiming to remain competitive with a clear objective to become Ebitda-positive, a reference to achieving profitability for the company's core operations.
In response to this goal, foodpanda has made the “painful decision to downsize some teams”, CNA reported.
The company’s Asia Pacific CEO, Jakob Sebastian Angele, addressed employees in July about the impending cuts and informed staff to brace for cost-cutting measures.
foodpanda also says it is "supporting impacted employees to help them through this transition, through employee assistance programmes and extended insurance and benefits".
foodpanda apologised to those affected.
foodpanda said: “To our impacted colleagues – we are very sorry we let them down. We will forever be grateful for their contributions and dedication to foodpanda.”
ST reported that foodpanda in Singapore is still apparently hiring for roles in marketing and media, as well as offering internships, the company's LinkedIn showed.
foodpanda currently operates in 11 markets across Asia.
A DealStreetAsia report added that about 150 people, or 20 per cent, of its staff in the Philippines, were also axed.
Cuts are expected in the Thailand office as well.
Top photo via foodpanda Facebook