Takeaway giant Just Eat is to cut 1,870 couriers and staff as demand slows.
The BBC reports the company said it will stop employing its own couriers and will use contractors instead.
This will result in 1,700 job losses.
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The company will also lose 170 operational staff.
The drivers and riders involved have been given six weeks’ notice.
Just Eat saw a nine percent slump in customer numbers in 2022 after Covid rules were relaxed and diners started returning to pubs and restaurants.
The couriers work for Just Eat’s “Scoober” service, which means they are classed as workers for the company.
They get paid a fixed hourly rate, an uncapped bonus and other benefits, like sick pay.
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However, most of the firm’s delivery drivers are contractors who do not enjoy such perks.
A spokeswoman said: “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.”
She added that the move would not affect Just Eat’s services.
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