Delivery Hero's Glovo to lay off 250 employees worldwide

BARCELONA (Reuters) -Spain's Glovo, part of Germany's Delivery Hero, said on Monday it planned to lay off 250 workers globally, citing a drop in orders and inefficiencies after the COVID-19 pandemic drove a hiring surge.

The layoffs, which will mainly affect Glovo's Barcelona offices, represent a 6.5% reduction in the company's global workforce.

"The layoff decision largely impacts the company’s headquarters in Barcelona in areas such as business support functions, recruitment and data," Chief Executive Oscar Pierre said in a statement.

"No couriers, pickers or front-line employees will be affected."

Pierre said Glovo's rapid growth since its launch in 2015 had created operational inefficiencies and that a slump in demand in the fourth quarter showed external factors were affecting the delivery industry's performance.

"The current macroeconomic situation, with rising interest rates and inflation, lowers the purchasing power of consumers, and some choose to order less often," Pierre said, adding that "our vision and strategy have not changed".

(Reporting by Joan FausWriting by David LatonaEditing by Andrei Khalip and David Goodman)