Realignment

Foodora closes delivery warehouse and cuts 128 jobs

The approximately 3,000 delivery staff who work for Foodora on the streets are not to be affected by the job cuts and realignment.

(Bild: AFP, krone.at-Grafik)

The food delivery company Foodora is cutting almost 130 jobs in Austria. The Delivery Hero subsidiary announced on Monday that 128 employees had been registered with the AMS early warning system "for the amicable termination of their employment contracts". The seven company-owned food delivery warehouses in Vienna, Linz and Graz will be closed and customer service outsourced.

"We are very grateful for their commitment to the company, have set up social packages and are already in talks with all affected employees to offer support during this phase and the start of their future careers," Foodora Austria CEO Herbert Haas was quoted as saying in a press release.

"foodora markets" will be closed
According to the statement, Foodora intends to focus on working with food retailers, drugstores, bakeries, pharmacies and other businesses in the future. The previously self-operated "foodora markets" will be closed in the coming weeks. This will affect 75 employees. Foodora most recently operated five such delivery warehouses in Vienna and one each in Linz and Graz.

"As far as the variety of products within the app is concerned, nothing will change for our customers - thanks to strong partnerships with well-known providers, an ever-increasing selection is available," Foodora promises its customers who order their groceries via smartphone and have them delivered.

Customer service to be outsourced
The company also announced that customer service will be bundled with a third-party provider. Around 50 people will lose their jobs as a result of the outsourcing.

According to "Wirtschafts-Compass", Foodora Austria GmbH had 410 employees in 2022 and posted losses. In 2021, the loss before interest and taxes amounted to 14.3 million euros, in 2022 it was 16.4 million euros. At the end of 2022, liabilities of EUR 17.7 million to the parent company Delivery Hero were converted into a capital reserve.

Delivery staff not affected
The approximately 3,000 delivery staff on the road for Foodora are not affected by the job cuts and the realignment.