Skip The Dishes is laying off some of its Canadian staff, as dampened demand for food delivery services take a hit on profitability.
Skip The Dishes, which is owned by parent company Just Eat Takeaway.com, announced last week it will be laying off 350 employees based out of Winnipeg, citing new changes that will “set the business and its partners up for sustainable growth,” which include scaling back its Canadian logistics team. The company revealed some of the individuals laid off were “contact centre employees” that focused on supporting logistics across other parts of the world.
The food delivery company originally started in Winnipeg in 2012, before it was bought by UK-based Just Eat in 2016, before merging with Takeaway.com. Operations span across numerous regions in the world, including North America, Europe, Australia, and Israel. Demand for food delivery was sent surging during the pandemic, but the lifting of restrictions across many parts of the world took a hit on the company’s business; Just Eat Takeaway.com revealed orders slumped 7% in the first half of the year compared to 2021.
Still, the company reported a 7% increase in revenue to $3.6 billion in the first two quarters of 2022, despite an erosion of margins due to growing competition from similar food delivery services such as Uber Eats. In fact, despite doubling in size prior to the pandemic, Just Eat Takeaway.com has yet to turn a profit.
Information for this briefing was found via Just Eat Takeaway.com. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
