Type
Internal restructuring
Country
Spain
Region
Este; Cataluña;
Location of affected unit(s)
Barcelona
Sector
Transportation / Storage
Warehousing And Support Activities For Transportation, Postal And Courier Activities
Postal And Courier Activities
53.20 - Other postal and courier activities

250 jobs
Number of planned job losses
Job loss
Announcement Date
30 January 2023
Employment effect (start)
5 February 2023
Foreseen end date
31 December 2023

Description

The Spanish home delivery company Glovo has announced that it will dismiss 250 employees in the coming months, which equates to 6.5% of its global workforce. The move will mainly affect the company's global headquarters, located in Barcelona (56% of the 250 redundancies or 140 in total), in areas such as business support functions, contracting and data, and will not affect couriers, pickers or front-line employees. 

The Company points out that the measure is necessary due to a substantial decrease in the demand of delivery services, and explained by the increasing interest rates and inflation and the loss of consumer purchasing power. This dismissal announcement comes less than a week after the Spanish Labour Inspectorate put forward a new proposal to sanction the company for a total of EUR 57mn (USD 61.94mn) for the alleged employment of false self-employed persons and for irregular work of foreign persons.

Company sources have advanced that they will open a negotiation process with workers' representatives, applying the labour legislation in force in each country. However, the Spanish unions argue that the part of the workforce that is planned to be laid off in Spain does not have union representation, so the company is not obliged to inform them of the details of the dismissal.


Sources

Citation

Eurofound (2023), Glovo, Internal restructuring in Spain, factsheet number 108327, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/108327.