Significant job losses in Europe at food delivery services Gorillas and Getir

Food delivery services Gorillas and Getir announced the layoff of hundreds of employees. It is part of a wave of mass layoffs from start-ups and technology companies.

Gorilla workers on strike

Gorillas says he is laying off 300 employees from his administration, i.e. half of his administrative staff, mainly in his human resources department. Cyclists and warehouse workers are not directly affected, but that will soon change. According to media reports, Gorillas plans to withdraw from several European countries such as Italy, Spain and Belgium and announces that he will target Germany, France, the Netherlands, the United Kingdom and the United States.

Gorillas CEO Kağan Sümer reaffirmed his company’s tough austerity measures. He told Reuters: “When we go public, we want to do it as a profitable business.” The start-up had to “take extra steps to get closer to profitability”. He had said in January that of the company’s 230 warehouses, only 25 to 30 percent were profitable.

The road to profitability is through layoffs, poor wages and deplorable working conditions for the company’s remaining employees.

After numerous protests, the company fired 350 workers in Berlin and Leipzig last October, alleging that unannounced and unorganized strikes were illegal. The message of these layoffs was clear: anyone unwilling to accept slavery-like conditions will be fired. Last month, the Berlin Labor Court gave its blessing to this policy.

Like some of its competitors, Gorillas, founded just two years ago, has grown rapidly. Investors valued it at around 2.5 billion euros at the end of 2021. The company had raised funds from investors last October for a volume of 860 million euros. According to its own information, the expected turnover for 2022 is around 750 million euros.

Competing food delivery service Getir also plans to lay off 4,500 workers worldwide, or about 14 percent of its total workforce. He has not yet provided details, but 400 jobs in Germany could be affected, according to online portal Techcrunch. According to Bloomberg, Getir expects a loss of about $1 billion in 2022.

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