Just Eat is cutting 1,700 jobs and will no longer employ its delivery riders in a major U-turn from its chief executive.
The takeaway business said self-employed – known as gig-economy – workers will deliver food in the UK. Employed riders have been given six weeks notice with pay.
Just Eat saw business boom during the pandemic when restaurants were closed, but in recent months customer numbers have fallen.
Job cuts: Just Eat said self-employed – known as gig-economy – workers will deliver food in the UK. Employed riders have been given six weeks notice with pay
It operates a combined system of employees and self-employed delivery workers, after being the first food delivery company to employ riders in December 2020.
Boss Jitse Groen has previously blasted the gig economy’s impact on workers and called for more regulation on the sector.
But an industry source said Just Eat had ‘been delivered a slice of humble pie’ after yesterday’s ‘embarrassing U-turn’.
A Just Eat spokesman said it was ‘reorganising and simplifying its delivery operation as part of the ongoing goal of improving efficiency’.