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Consumer/News/

Glovo lays off 6% of staff following fresh fine from Spanish
government

The business is also under investigation by the EU for alleged
breaches of antitrust rules

By Tim Smith 30 January 2023

Glovo cofounder Oscar Pierre
Glovo cofounder Oscar Pierre
[AdobeStock]

\Consumer

Raw pet food: On the menu?

By Adam Green 19 January 2023

 

Consumer/News/

Glovo lays off 6% of staff following fresh fine from Spanish
government

The business is also under investigation by the EU for alleged
breaches of antitrust rules

By Tim Smith 30 January 2023

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Barcelona-based food delivery business Glovo is today announcing
layoffs that will affect 6% of its staff -- 250 people will lose their
jobs, with the recruitment and data departments in the Barcelona HQ
being most affected.

The CEO is set to tell staff of the decision in an all-hands meeting
Monday morning.

The company told Sifted the market downturn is behind the move: "The
current macroeconomic situation, with rising interest rates and
inflation, has impacted the purchasing power of consumers, which we
noticed towards the end of 2022."

Glovo said its rapid recent growth -- which it says has seen its team
size grow 40% year on year, to 3,900 people today --  had "naturally
created inefficiencies", which it now "needs to correct". 

It said it will also reduce "non-headcount-related operational
expenses" and will only be hiring for "business-critical roles
through the first half of 2023." 

The context of Glovo's layoffs

The decision comes less than a week after Reuters reported that Glovo
was fined EUR56.7m by the Spanish government for allegedly violating
employment laws. It's on top of a EUR79m fine in September 2022 for
alleged violations of labour law. 

Glovo is appealing both fines and told Sifted that today's layoffs
are not connected to the penalties.

Glovo joins the growing list of European tech companies laying off
staff as public markets slump and the continent slides into
recession. But the scaleup -- which was bought out by Berlin-based
Delivery Hero at the end of 2021 -- has other headaches to contend
with beyond the slowdown. 

Last year the European Union raided Glovo and Delivery Hero's offices
as part of an investigation into possible breaches of
anti-competition law, with insiders telling Sifted that the company's
leadership did not take antitrust rules seriously.

Tim Smith is a senior reporter at Sifted. He tweets from @timmpsmith 

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