Employees of online food ordering service Foodpanda India are the latest to face the brunt of turbulence in the food-tech sector this year. The Rocket Internet-backed company, which launched in India in 2012, has decided to lay of 15 percent of its workforce.
The layoffs will affect about 330 of Foodpanda´s employees in the country, given that the company had about 2,200 people on its rolls prior to the reductions, according to The Economic Times India.
– While we continued to invest in processes and technology we also had to take some difficult decisions but we believe them to be necessary steps on our path to become sustainable and profitable within the targeted timeline, Saurabh Kochhar, chief executive of Foodpanda India says in a press release.
A More Streamlined Process
Foodpanda, which is active in more than 30 countries globally, is currently available in about 200 cities in India and claims to have total of 12,000 restaurants on its platform, which lets customers place food orders through a smartphone app and a website.
Lately the company has been hit with local competition and to better compete with domestic rivals such as Zomato, it recently acquired TastyKhana and Just Eat in India.
But the fierce competition is not the main reason according to Foodpanda who claims that the layoff is a result from a more streamlined management process. Which has resulted in fewer manual interventions.