Delivery Hero subsidiary foodora plans to close its online supermarkets in Austria, risking approximately 128 jobs.
The closure of foodora markets in Austria will not impact its product offering as it has built strong partnerships with suppliers, according to media reports.
Going forward, the company aims to expand its network in the country by focusing on its collaboration with food retailers, drugstores, bakeries, pharmacies and other stores in the area of food deliveries.
Job Cuts
The closure will impact 75 employees who were registered in the early warning system of the Public Employment Service (AMS) for the amicable termination of their employment relationships, the online portal trendingtopics.eu noted.
The company added that it would lay off another 53 employees in the customer service department.
The business operated under the Mjam brand in Austria until it was acquired by Germany’s Delivery Hero and rebranded as foodora.
In February of this year, Delivery Hero said it delivered on all of its annual targets last year and remained ‘fully committed’ to its 2024 strategy.
In a preliminary full-year results release, the group reported a gross merchandise value of €47.6 billion ($51.3 billion) last year, up 6.7% year-on-year and in line with the company’s 5-7% guidance range.
Elsewhere, Turkish delivery company Getir announced plans to withdraw from its remaining European and US markets to focus on its main home market, last month, marking an abrupt turnaround after expansion and boom in recent years.
The company grew rapidly during the COVID-19 pandemic, attracting high-profile investors and reaching a valuation of $12 billion (€11.16 billion) two years ago, as it established operations across Western Europe and in New York and Chicago.