Technology

German Groceries App Gorillas Poised For Job Cuts In Spain

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German grocery delivery app Gorillas is considering jobs cuts in Spain and has asked its workers to elect representatives for the process, the Berlin company has said.

Customers in the four Spanish cities where Gorillas operates – Madrid, Barcelona, Valencia and Alicante – will continue to be served for the time being, the company said in response to a Reuters request for comment.

The start-up, which was founded in 2020, currently employs several hundred people in Spain, where its local competitors include Getir and Glovo.

Last month, Gorillas said it would lay off 300 people, cutting its administrative staff in half, as it seeks to become profitable after growing rapidly during the COVID-19 pandemic.

The company also announced that it would look into selling its businesses in Belgium, Denmark, Italy and Spain. Only in Spain were redundancies being examined, Gorillas noted.

The Berlin-based startup, founded in 2020, has tripled the size of its business since October when it raised €860 million, but it has not been profitable amid an uncertain economic outlook.

Private-Label Products

In early June, the German grocery delivery app announced the launch of private-label products in Germany, France, the UK, and the Netherlands.

The company will offer around 50 products in 11 popular categories under four brands – Gorillas Daily, Gorillas Premium, Hot Damn and Startup Beer.

Recently, the grocery firm signed a strategic agreement with Casino Group to extend their partnership to the quick commerce platform Frichti.

News by Reuters, edited by ESM. For more technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
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