Food delivery giant Just Eat Takeaway plans to slash hundreds of jobs in France as part of a vigorous restructuring if its operations.
Le Monde reports that the company is reorganizing its operations in 26 French cities with redundancies at its Paris office while it will change its model for employing delivery riders.
Just Eat had pursued a different model to its rivals in many places by hiring its delivery riders as employees rather than contractors.
“Due to the challenging market dynamics in France and our ambition for sustainable profitable growth, we have the intention to restructure our operations in France,” a spokesperson for the company said.
“The strategic restructuring will consist of redundancies of staff in the Paris office and changes in the operations of our delivery business. We will make every effort to support the employees impacted throughout this process. We stay committed to providing the best service quality for our restaurant partners and consumers.”
Discussions with unions representing workers are ongoing.
Just Eat does not intend to cease its delivery operations in any of the 26 cities.
This marks the latest cost cutting measure for the online food delivery space in what has become a tighter economic environment.
In May reports surfaced around the status of Just Eat Takeaway’s acquisition on US rival Grubhub and whether it would be sold off.
The Dutch company had acquired its American competitor in 2020 for $7.3 billion during a frothy time for food delivery. The sector’s volumes had boomed during Covid-19 lockdown restrictions as people were stuck indoors and ordered food to their homes.
That environment also benefitted the raft of rapid grocery delivery start-ups that popped up around Europe over the last two years but that has swiftly changed lately.
A slew of job cuts have since hit the industry with major player like Gorillas and Getir cutting staff and exiting some markets in a bid to rein in costs after raising huge amounts of venture capital cash.