Rocket Internet-backed online food ordering service Foodpanda’s India unit has laid off over 300 people, joining rivals Zomato, Swiggy and TinyOwl in scaling down its business in the country to curb cash burn.
The downsizing, which was confirmed by Foodpanda India CEO Saurabh Kochhar, will see the company losing close to 15 per cent of its staff from across business segments. The layoffs will be restricted only to Foodpanda’s Indian business.
“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,” said Kochhar, in a statement.
The company claims the layoffs were triggered due to the achievement of “about 98% automation rate in order processing”, which meant it needed fewer staffers to handle the same amount of orders. The biggest chunk of layoffs - 250 employees - came from the shutting down of an in-house call centre.
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