Deliveroo is set to eliminate roughly 2,000 driver positions in Germany - Delivery service Lieferando to cut approximately 2,000 driver positions in Germany
In a significant move, Lieferando, a leading food delivery service in Germany, has announced plans to cut approximately 2,000 driver positions, representing about 20% of its delivery workforce in the country. The majority of the job cuts are expected to be concentrated in large cities such as Hamburg, due to the scale and density of operations in these locations.
The restructuring is driven by a strategic shift in Lieferando’s operational model. The company is moving away from direct employment of delivery drivers and towards greater reliance on subcontractors and specialized logistics firms, especially in smaller markets like Wiesbaden, Lübeck, and Bochum. This approach has already been tested in Berlin, where selected districts saw deliveries handled by third-party providers.
Lieferando's management cites the rapidly evolving and increasingly competitive food delivery market as a key driver of this restructuring. Customer expectations for reliability and speed are rising, and the company believes its current structure is insufficient to consistently meet these demands. By outsourcing deliveries, Lieferando aims to increase operational flexibility and potentially reduce costs.
However, the move comes amid ongoing tensions with labor unions. The Food, Beverage and Catering Union (NGG) has accused Lieferando of building a “shadow fleet” of subcontractors to phase out directly employed drivers, offering them re-employment under less favorable terms with secondary companies. This strategy has been used previously in Berlin, where over 500 jobs were reportedly cut in a similar manner. In Austria, Lieferando has already terminated all driver contracts, offering them freelance status instead.
Currently, directly employed Lieferando drivers in Germany earn the statutory minimum wage of 12.82 euros per hour, supplemented by performance-based bonuses, which are set to be discontinued from August. This adds economic uncertainty for the remaining workforce and is a point of ongoing labor dispute.
The changes reflect wider trends in the gig economy, where companies are pursuing flexible labor models, often at the expense of traditional employment contracts. Lieferando's job cuts will affect drivers in both Hamburg and Berlin, as well as nationwide in Germany. The company aims to complete the layoffs by the end of the year.
[1] https://www.handelsblatt.com/unternehmen/logistik/lieferando-kurzt-20-prozent-der-lieferanten-in-deutschland-ab/27163634.html [2] https://www.wirtschaftswoche.de/wirtschaft/logistik/lieferando-kurzt-20-prozent-der-lieferanten-ab/200082266.html [3] https://www.spiegel.de/wirtschaft/soziales/lieferando-kurzt-20-prozent-der-lieferanten-ab-und-verliert-an-arbeitsplaetzen-a-73159183.html [4] https://www.derstandard.at/story/2000133842946/lieferando-kurzt-20-prozent-der-lieferanten-in-deutschland-ab [5] https://www.nachrichten.de/wirtschaft/lieferando-kurzt-20-prozent-der-lieferanten-ab-und-verliert-an-arbeitsplaetzen-100478088.html
Community aid is essential for affected drivers as Lieferando, in its restructuring, aims to reduce approximately 20% of its delivery workforce, transitioning from direct employment to subcontractors and specialized logistics firms. Finance for the restructuring of firms, specifically in the food delivery sector, may be necessary to support the transition and alleviate potential hardships for affected workers.
