Getir to cut 2500 jobs in global restructure efforts!

Getir to cut 2500 jobs in global restructure efforts!

Getir announced a global restructuring on Tuesday, saying it plans to cut 2,500 jobs across five countries, or 10.9% of its total workforce.

The company said the job cuts, which make up more than 10% of its 23,000-member workforce, would include couriers, pickers, and office employees in the UK, US, Germany, the Netherlands, and its home market, Turkey.

Getir has already exited France, Spain, Italy and Portugal. There have also been reports it is racing to raise cash, amid rumors its UK operation could go bust – claims people close to the firm have reportedly denied.

Last month the company auctioned off equipment in the UK ranging from scooters to food delivery boxes after closing a number of dark stores. At the time the firm said it was “normal” to sell excess inventory.

The market has rapidly contracted since the reopening of hospitality businesses, offices and high streets after the pandemic lockdowns, prompting consolidation among a plethora of private equity-fuelled operators that sprung up to take advantage of demand for home deliveries.

Investors poured more than $14bn (£10.5bn) into the market globally over 2020 and 2021, according to analysts at PitchBook, but interest has rapidly retreated.
Last year, the value of on-demand delivery investment globally by venture capital investors dived by more than 60% to £3.8bn according to PitchBook and is on track for another fall this year.

Getir is thought to be attempting to raise $500m in a funding round led by existing investor Mubadala, the Abu Dhabi sovereign wealth fund, in order to continue operating.

Getir said it was reducing the size of its team with “a heavy heart” to “increase operational efficiency”.

“Decisions like these are never taken lightly. However, Getir is determined to do right by all employees affected by the process in line with its values and in full compliance with local laws. Getir is very grateful to all colleagues for their hard work, dedication, and significant contributions to the business.” – Getir shared in the press release.

The company said it “remains fully committed to the future of the industry it pioneered eight years ago and will continue to lead it in the future”.

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