The decision, which follows a new sanction from the Labor Inspectorate, will mainly affect employees at the headquarters in Barcelona
Home delivery company Glovo announced Monday the layoff of 250 employees, 6.5% of its workforce. In a statement addressed to employees, the company’s CEO, Óscar Pierre, acknowledges that the decision “was not in our plans six months ago”, indicating that the management team “deeply regrets” the situation “and we take all responsibility for the decisions that led us here.
On January 24, the Labor and Social Security Inspectorate again imposed a fine of 38.1 million euros on the company for retaining bogus self-employed persons and thus not complying with the so-called equestrian law, but also for having undocumented workers, who are already accumulating more than 205.3 million euros in fines in Spain for illegally employing 37,348 workers.
From the company they assure that this situation “has had nothing to do” in the decision of the layoffs which, as the company’s CEO explains in the letter to the employees, will be concentrated at the headquarters in Barcelona in the commercial support departments , data and contract. “Distributors or frontline workers will not be affected. The process strictly adheres to local laws and practices in all affected countries,” the statement read.
The manager defends that since its foundation in 2015, the company has grown at a very fast pace, “by two or three digits a year”, which in recent years has made it necessary to expand the team to adapt. “While we have always been level-headed about our spending and how we manage our operating costs, rapid growth has led to operational inefficiencies.”
The company assures it has been monitoring these inefficiencies throughout 2022, finding a turning point in October in the heat of the demand slump due to the difficult macroeconomic environment, “with rising interest rates and inflation” that have reduced consumers’ purchasing power.
“While we still expect strong double-digit growth by 2023, we have had to adjust our forecasts to reflect this new reality,” says Pierre.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
