Just Eat: Takeaway firm to cut 1,900 jobs in UK

Takeaway delivery firm Just Eat is to cut 1,870 jobs in the UK after a slowdown in sales.

The firm said it would stop employing its own couriers and use contractors instead, resulting in 1,700 job losses. 170 operational roles will also go.

The drivers and riders affected have been given six weeks’ notice.

It comes after the company saw a 9% slump in customer numbers last year as Covid rules eased and diners returned to pubs and restaurants.

The couriers affected work for Just Eat’s “Scoober” service and are classed as workers for the company, getting paid a fixed hourly rate, an uncapped bonus and other benefits such as sick pay.

Most of the firm’s delivery drivers are contractors who do not enjoy such perks.

“We have proposed to transition away from the worker model for couriers, which is a small part of our overall delivery operations – running in certain parts of six UK cities,” a spokeswoman said.

She added that the move would not affect Just Eat’s services.

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Just Eat, which is the largest takeaway delivery company in Europe, has been a prominent supporter of plans to hire its couriers in Europe as workers, arguing this gave them benefits and more workplace protection.

Boss Jitse Groen had previously said the so called gig economy model came “at the expense of society and workers themselves”.

But while most of Just Eat’s riders in the EU are classed as workers, more than 90% of its meals in Britain are delivered by contractors.

The firm has said using workers rather than self-employed people in the UK put it at a competitive disadvantage against rivals such as Deliveroo and Uber.

Aside from the UK, Just Eat also uses a contractor model in Ireland, Slovakia and most of France excluding Paris where its riders are full employees.

The move comes a month after Deliveroo said it would cut about 350 roles, mostly in the UK, due to “unforeseen economic headwinds”.

Last week Deliveroo reported a £294m annual loss after consumers cut back due to the rising cost of living.