A Canadian food analytics professor says it’s not surprising that SkipTheDishes is laying off hundreds of employees amid other competition and high food costs.
On Tuesday, SkipTheDishes CEO Paul Burns shared the news in a LinkedIn post.
“Following a comprehensive review, we are restructuring our business and reducing the size of our workforce. This move affects approximately 100 Canadian market employees, along with 700 operations employees servicing the global Just Eat Takeaway.com organization based out of Canada,” the post read.
He explains that the measures the company took were necessary to ensure the company has the “right resources and organizational structure in place to drive sustainable growth.”
In addition, the company claims a new focused approach helps to enhance its service to its customers and stakeholders.
Burns adds that the decision was not based on the quality of the work by its employees but how the roles align with their future vision.
“To those of you leaving Skip, I want to express my heartfelt gratitude to each of you for everything you’ve poured into this business. Thank you for sharing your talents with us – talents I have no doubt other companies will see tremendous value in,” he said.
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Dalhousie University’s Agri-Food Analytics Lab Professor and Director Sylvain Charlebois explains the reasoning behind the massive layoff.
“It is indeed about macroeconomic factors. The paradox with SkipTheDishes is that despite the food service industry employing more people now than at any point in the last four years, consumers are avoiding extra costs, leading to layoffs,” he said in a statement to Now Toronto on Wednesday.
Furthermore, Charlebois says another factor to consider is that the food company has not been able to keep up with its competitors.
“Uber has been more successful in conquering major markets and engaging more outlets, while Skip has struggled to remain competitive. DoorDash is performing better as it targets smaller markets, generally,” he said.
On social media, some users understand the job cuts, given the high costs of food delivery services.
“People can’t afford takeout or restaurants these days,” one X user said.
“Sad, but not surprising. Many service businesses that became popular during the pandemic/lockdown are no longer in demand. Just cancelled my #instacart account earlier this month after being hooked to it for about 3yrs,” another user said.
“It’s already expensive enough to eat out. You want to add 30 per cent + for tip delivery and skip surcharge. No thanks, I’ll eat at home,” another user commented.
SkipTheDishes started in Winnipeg in 2012 and was acquired in December 2016 by Just Eat, which merged with Takeaway.com in 2020.
