Motorcycle couriers for the Yemeksepeti Banabi food delivery firm have been striking for better pay and conditions
Representative image of food delivery workers. AFP / Adem ALTAN

KEY POINTS

  • Foodpanda's Asia Pacific CEO said the company is focusing on streamlining its operations
  • Delivery Hero confirmed it is in early stages of discussions to sell part of its Southeast Asia business
  • Layoffs in February reportedly hit the Malaysia business development team hard

Singapore-based food delivery company Foodpanda is laying off some employees as its parent company, Delivery Hero, is in the early stages of discussions to sell a part of its delivery business in Southeast Asia.

"Our company priority right now is to become leaner, more efficient and even more agile. To do this, we need to streamline our operations so we can take on a more structured approach for the coming days," Jakob Sebastian Angele, Foodpanda's Asia Pacific CEO told employees Thursday, according to a letter seen by CNBC.

The exact number of employees and specific locations that will be affected by the layoffs is unknown. Foodpanda, which operates in 11 Asian markets, did not immediately respond to International Business Times' request for comment.

German news outlet WirtschaftsWoche reported Wednesday that Delivery Hero was in talks to sell some of its business in Southeast Asian (SEA) markets, specifically in Singapore, Thailand, Malaysia, Laos, the Philippines, Cambodia and Myanmar. Its competitor Grab is reportedly among the potential buyers.

Delivery Hero confirmed it was negotiating with "several parties" regarding the potential sale of its Foodpanda brand but did not confirm if Grab was being considered as a buyer. The Berlin-headquartered company also did not specify which SEA markets will be affected.

The last known layoffs at Foodpanda were in February, with most of the reductions reportedly affecting the business development unit in Malaysia. Foodpanda at the time said the workforce cuts were made due to the challenging macroeconomic environment. It also cut some of its Asia teams in September 2022, when 150 employees were reportedly let go of in the Philippines.

Foodpanda joins other food delivery providers that have cut staff this year. Grab announced 1,000 job cuts in June as part of its cost-cutting measures. Chicago-based Grubhub also eliminated around 400 jobs in June.

Read more