Also Glovo joins the wave of layoffs. The home delivery platform, based in Barcelona, has announced cuts that will affect 6,5% of its staff: 250 Guests will lose their jobs, especially their headquarters in areas such as “business support functions, recruitment and data,” CEO Oscar Pierre said in a statement, adding that “couriers, pickers or frontline employees.
The downturn in the market brought the company to these layoffs. Pierre said Glovo's rapid growth since its launch in 2015 has created operational inefficiencies and that the slump in demand in the fourth quarter demonstrates that external factors are affecting the performance of the delivery sector. “The current macroeconomic situation, with rising interest rates and inflation, has had an impact on consumer purchasing power, which we noticed towards the end of 2022,” said the CEO.
The context of the Glovo layoffs
Glovo said its recent rapid growth – which it said saw its team grow 40% year-over-year to 3.900 people today – has "naturally created inefficiencies", which now "must correct". In addition, the company said it will also reduce "non-staff operating expenses" and hire only "business-critical roles through the first half of 2023."
Glovo joins the growing list of European technology companies laying off staff, while public markets collapse and the continent slips into recession. But the scaleup – which was bought by Berlin-based Delivery Hero in late 2021 – has other headaches to deal with than the slowdown.
Two fines from the Spanish government
The decision comes less than a week after Reuters reported that Glovo has been fined since Spanish government for 56,7 million euros for alleged violations of the laws on employment. This fine comes on top of the €79 million fine issued in September 2022 for alleged violations of labor laws.
Glovo is appealing against both fines and said today's layoffs are unrelated to the sanctions.
Last year, the European Union raided the offices of Glovo and Delivery Hero as part of an investigation into possible violations of anti-competition laws, and insiders said the company's management did not take the allegations seriously. antitrust rules.
