The food delivery giant Lieferando has significantly scaled back its previously announced job cuts, but the move is sparking renewed criticism over the company’s outsourcing strategy and treatment of its workforce. Initially, Lieferando signaled plans to dismiss up to 2,000 salaried delivery couriers – representing a 20% reduction in its delivery fleet – as part of a shift to outsource 5% of its deliveries to third-party contractors.
Now, the cuts affect approximately 1,500 couriers, a reduction of 15% of the workforce. While the company attributes part of this reduction to natural employee turnover between summer and winter, the situation highlights a strategic pivot towards a more contractor-reliant delivery model. According to Lennard Neubauer, Managing Director of Lieferando’s marketplace, the change is intended to enhance operational efficiency.
A social plan negotiated with the company’s works council for the affected employees provides for a severance package equivalent to one month’s salary per year of employment, alongside €600 for training and development. Notably, this package extends to part-time employees, a detail underscoring the breadth of the workforce impacted.
However, the company’s approach is drawing sharp rebukes from the works council and the food and beverage workers’ union, Nahrung-Genuss-Gaststätten (NGG). The works council accuses Lieferando of a lack of genuine engagement in negotiations and a persistent failure to provide requested information. The union points to a concerning trend where permanent employees are terminated only to be re-engaged through subcontractors under less favorable conditions, a pattern that has already fueled multiple strikes by delivery couriers in recent months.
Despite the controversy, Lieferando maintains that outsourcing has yielded positive results. Neubauer reports that deliveries are being bundled more efficiently on a national scale, resulting in a 10% reduction in distances and delivery times. Order punctuality has risen to 85% in strategically focused areas, accompanied by a notable improvement in customer reviews. Neubauer emphasized a renewed sense of growth within the delivery service.
While long-term outsourcing expansion hasn’t been ruled out, Lieferando claims to be striving for a balance. The company suggests that leveraging the logistical capabilities of its parent company, Takeaway Express, remains an option for high-demand regions. This assertion, however, does not quell the fundamental anxieties about workforce stability and the potential erosion of labor standards within the rapidly evolving gig economy. The situation raises serious questions about Lieferando’s commitment to its employees and the wider implications for worker protections in the burgeoning online delivery sector.
