Food delivery firm Glovo has announced a major reduction in its global workforce following a slowdown in customer orders.

The company said the decision was driven by internal inefficiencies and changing market conditions.

Glovo’s headcount had expanded rapidly during the pandemic, growing by 40% year-on-year to around 3,900 employees.

Approximately 250 staff are now set to be laid off.

The cuts will mainly affect business support functions, recruitment teams and data departments at the company’s Barcelona headquarters.

Glovo confirmed that couriers, pickers and front-line operational staff will remain unaffected.

Chief executive Oscar Pierre cited the current macroeconomic climate as a key factor behind the decision.

He said rising interest rates and inflation have reduced consumers’ purchasing power, leading some customers to place fewer orders.

Despite the layoffs, Pierre stressed that Glovo’s long-term strategy remains unchanged.

The restructuring is aimed at correcting inefficiencies created during a period of aggressive expansion.

The company also plans to reduce non-staff operational costs and limit hiring to business-critical roles through the first half of 2023.

Pierre described the decision as painful, acknowledging the contributions of employees who helped build the company.

He said management felt it was important to clearly explain both the rationale for the layoffs and the future direction of Glovo.

The announcement comes amid mounting regulatory pressure on the delivery platform.

Less than a week earlier, Spain’s Labour Ministry imposed a €56.7 million fine over alleged labour law violations.

The penalty included fines for misclassifying riders as self-employed, unpaid social security contributions and visa breaches.

Glovo is the Spanish unit of Germany-based Delivery Hero, which has faced similar scrutiny across Europe.

In recent years, total fines linked to alleged labour violations in Spain have reached €205 million.

Spain’s 2021 labour law is considered one of Europe’s most ambitious efforts to regulate the gig-economy.

Last year, the European Union raided the offices of Glovo and Delivery Hero as part of an antitrust investigation.

Sources later suggested company leadership had not fully prioritised compliance.

The layoffs highlight growing pressure on delivery platforms as economic conditions tighten and regulators intensify oversight.