The takeaway app told Reuters it has merged its existing customer and restaurant operations teams into one team, which has resulted in a number of redundancies in the UK and Ireland.
READ: Fiery competition from Deliveroo and Uber makes Just Eat a little too spicy for Berenbergs liking
“This can be taken two ways: (1) the company has grown very fast in the past and has had to make hires in areas where they are either no longer needed or the teams can be restructured in a more cost-effective way; or (2) the company is facing stronger competition from the likes of UberEats and Deliveroo that now require the company to be more frugal in its spending - potentially to help with its likely increased marketing,” Peel Hunt said.
The broker maintained a ‘sell’ rating on the stock and a target price on 520p.
Just Eat did not confirm the exact number of job cuts but TechCrunch reported the number at about 100 employees.
Peel Hunt said the news doesn’t help the fact that heatwaves in the UK could dampen demand for Just Eat.
“However, if they can start to take advantage (non-geo location deliveries for example) they may be able to solve it,” it said.
“However, we believe the other players have that edge given they are delivery-first.”