FoodPanda Lays Off 60 Staff: Timing Questioned Following New Regional Office Launch in Singapore

Popular food delivery service company Foodpanda has laid off 5 percent of its employees in Singapore, or around 60 workers.

The company said that the retrenchments were made with the view toward keeping Foodpanda competitive and profitable, as the layoffs would naturally reduce costs, with a spokesman for the company citing a “critical need” to reduce costs.

Foodpanda called its decision to downsize some of its teams a “painful” one and added that via employee assistance programs, and extended insurance & benefits, it is helping the retrenched workers through the transition.

"To our impacted colleagues – we are very sorry we let them down; we will forever be grateful for their contributions and dedication to Foodpanda," the spokesman has been quoted as saying.

The firms will also be carrying out staff cuts in the Philippines and Thailand.

Neither the roles nor the demographics of the retrenched staff in Singapore have been disclosed by the company, however.

In July, the company opened its new regional HQ in Singapore as a home for its global tech hub. It also launched PowerUp! Tech Academy is aimed at upskilling riders, growing the company’s tech talent pool, and helping its merchants digitalize.

FoodPanda, which is under a German parent company, Delivery Hero, has been operating in Asia for the past ten years.

It was one of the companies that did well during the COVID-19 pandemic, especially as many turned to food deliveries during a time of restricted movement.

Many commenters surmised that the job cuts have come because most pandemic restrictions have been eased.

However, some wondered why the company was laying off workers so soon after opening its brand-new regional hub.

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