SINGAPORE — Foodpanda's Asia-Pacific CEO cited the need for the company to be "more agile" as it lays off staff in the Asia-Pacific region amid talks of a partial sale.

In a letter from foodpanda's Asia-Pacific CEO Jakob Sebastian Angele to staff, he said the company needs to streamline its operations so it can take on "a more structured approach for the coming days".

"These decisions are always very tough and know it affects all of you, so I am truly sorry we have to put everyone through this. There is nothing I can say to make this better," he wrote.

On Sept 20, foodpanda's Berlin-based owner Delivery Hero confirmed talks on a partial sale of its Asia business, adding that the deal's value was still under negotiation. It plans to sell its foodpanda business in "selected Southeast Asia markets".

In response to CNA's queries, foodpanda said on Saturday (Sept 23) that its focus will be on "supporting impacted colleagues through this difficult time".

"We are extremely sorry to colleagues who are leaving us and are grateful for their contributions to foodpanda," it added in its statement.

The company did not answer questions about the number of affected workers in Singapore or which departments they came from. 

In his letter to staff, Mr Angele said that affected staff members would receive support, including a severance package based on their length of service or one that is aligned with the country's statutory guidelines.

Those affected by the job cuts may also get paid gardening leave and extended medical insurance coverage. Employees can also encash any unused and accrued annual leave in 2023.

The most recent round of layoffs by foodpanda comes about a year after it cut jobs in September 2022, affecting staff in Singapore.

Earlier this week, foodpanda said: "Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets.

"Any discussions or plans are in their preliminary stages."

The Wirtschaftswoche business magazine first reported that Singapore's Grab could pay a little more than €1 billion (S$1.46 billion) for Delivery Hero's Asia business.

Grab declined to comment.

Delivery Hero has been focusing on reaching profitability while maintaining growth as investor confidence in the company started to wane after a pandemic-driven boost.

The group has said that it reached an adjusted profit before interest, tax, depreciation and amortisation in the first six months of the year, although it did not quantify it, after a loss of €323 million in the same period a year earlier. CNA