30 Jan, 2023 @ 19:00
1 min read

Glovo Spain announces cuts to 6% of its team, 250 employees face chopping block

New food delivery rider rules start for Glovo and Uber Eats in Spain
April 20, 2020, Lima, PERU: Lima, vienes 25 de octubre del 2019.fotos de los repartidores de las apps de delivery de comida que funcionan en Perú: Rappi, Glovo, Uber eats. Camino a un delivery por las calles de Miraflores (Credit Image: © El Comercio/GDA via ZUMA Wire)

Food delivery giant Glovo announced layoffs which will affect 6% of its staff, with the majority of workers in the Barcelona headquarters impacted. 

The cuts come amid a huge €56.7 million fine by the Spanish government for allegedly violating employment laws. 

That was on top of a €79m fine in September 2022 for alleged violations of labour law. 

Due to Monday’s announcements, 250 people will lose their jobs, with the recruitment and data departments in the Barcelona HQ being most affected.

“This was not on our radar six months ago,” said the company’s chief executive Oscar Pierre. “The current macroeconomic situation, with rising interest rates and inflation, has impacted the purchasing power of consumers, which we noticed towards the end of 2022.”

Glovo said its rapid recent growth — which it says has seen its team size grow 40% year on year, to 3,900 people today —  had “naturally created inefficiencies”, which it now “needs to correct”. 

It 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.” 

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Anthony Piovesan

Anthony joins the Olive Press from Australia, where he worked as a journalist for six years. He reported for country and suburban newspapers, before becoming a political correspondent for News Corp.

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