Glovo has revealed plans to lay off 750 workers across Spain and cut services in 63 towns as part of a national restructuring process.

The food delivery platform will cut positions across the whole of Andalucia, except in Granada and Huelva, as part of its collective redundancy plan (ERE).

It will also scale back its delivery service in 63 towns across the country in an effort to avoid shutting down those markets entirely.

In a statement seen by Europa Press, the company described the decision as ‘difficult’ but stressed that it will continue operating normally in more than 800 cities across Spain.

The announcement comes just weeks after the trade union CCOO accused the company of carrying out what it described as a ‘hidden ERE’ that was affecting up to 20% of the workforce in some provinces.

Company blames current delivery model

Glovo said the move is linked to problems with its current delivery system, known as Gen2, which it described as inefficient.

The company has therefore opened a consultation period with workers’ representatives for the restructuring process.

According to the statement sent to employees in different regions of Spain, the layoffs are based on ‘organisational and production-related causes’ and are intended to adapt the company’s operational structure to ensure long-term viability and competitiveness.

The company claims that the Gen2 system has ‘proven inefficient and has caused a significant drop in service quality’, particularly in medium-sized and smaller towns.

Shift to a different operating model

Glovo says the situation makes it ‘essential’ to move back to its previous system, known as Gen1, in which the company does not directly manage the delivery operations.

Despite the reduction in its geographic presence, the platform said it will continue working to provide ‘the best possible experience’ for both customers and partner restaurants across the rest of its network in Spain.

Read more Andalucia news at the Spanish Eye.