Just a few days after a new fine from the Ministry of Labor against Glovo was announced, the problems seem to be accumulating for the company. On the one hand, have announced the dismissal of 250 people, 6.5% of its workforce; and on the other, the restaurant chain Grupo Rodilla has canceled its contract with them due to the sanctions that have been imposed for not complying with the laws.
The CEO of Glovo, Oscar Pierre, has recognized that the layoffs are the last resort they had left to reduce expenses, given that they have been immersed in a process of reducing costs and improving their divisions for several months now. Most layoffs will affect the company’s operating divisions in Barcelona.
Glovo has ensured that the layoffs will not affect delivery drivers or other front-line jobs, and that they will focus on areas such as business support and recruiting, and also data specialists. Pierre has stressed that six months ago they had no plans to make layoffs, and that they have tried to avoid them by evaluating various assumptions, but they have not achieved the results they wanted.
Meanwhile, it seems that the fines that the Ministry of Labor has imposed on Glovo are beginning to have negative consequences for the company. This is evidenced by the decision made by Grupo Rodilla, which according to El Confidencial has decided to stop working with them as of next February 1, when their contract expires, which allowed their clients to receive their food at home.
From Rodilla they consider that Glovo does not respect the employment relationship with its workers, and that His philosophy is in contradiction with Glovo’s labor policy regarding the treatment given to riders, even going so far as to use immigrants in an irregular situation to make deliveries. Therefore, Grupo Rodilla will continue to use the companies that are Glovo’s competition and that do use in-house delivery drivers for home deliveries: Uber Eats, Just Eat and Stuart.
