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Foodpanda Cuts Down India Workforce By 15 Percent, Cites Increased Automation As Cause

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Amid those infinite layoffs and shutdowns that Indian food tech industry has brought to the otherwise flourishing startup realm this year, Foodpanda has said that it has  brought down its India workforce by 15 percent and is still working just fine.

In an emailed statement to NDTV, Foodpanda claims to have achieved a 98 percent automation rate in order processing, which has made a direct impact on the company’s manual workforce. Redundancies will be made across a few departments, and affected employees will be provided with due remuneration as well as provided assistance to discover other job options.

Foodpanda CEO Saurabh Kochhar said –

We are certain that the team will help in smoothening operations and take us through the next phase of growth.

2015 has been a very crucial year for Indian food tech startups. The business segment picked up big time with players like Swiggy, FoodPanda, Zomato, TinyOwl. The same segment though, saw numerous shutdowns (Dazo and Eatlo being the most notable ones) and even more layoffs. However, Foodpanda’s reasons for layoffs — if true — could well be one of those rare instances wherein tech enhancement and not cash crunch is the reason behind layoffs.

While the segment got heated up with increase in the number of players, some of them ended up pretty soon because of logistical challenges, discount wars and service issues. And in order to survive with these challenges, companies had to cut their workforce which resulted into massive layoffs.

TinyOwl made it to top headlines after employees came out on social media expressing their displeasure at the way the company handled layoffs and shut down overnight. Zomato was in the news for laying off employees citing company reshuffle. Recently Grabhouse fired about 170 odd employees again citing company restructuring.

Bringing automation to the company is Foodpanda’s another way to bring down the need for extra workforce. This would eventually burn less cash from firm’s pocket and help it survive in the difficult times.

Senior Writer

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