Flink, the Berlin-based unicorn, is reportedly set to lay off 8,000 employees, which accounts for 40% of its workforce, according to Manager Magazin. The express delivery service has been grappling with difficult market conditions and rising prices since April last year, prompting the need to revise its cost structures and focus on profitability.
Flink has confirmed the job cuts, stating that positions will not be filled after employees resign or are dismissed. The layoffs are expected to impact all areas of the company, except for the tech department, which is said to have seen an increase in hiring. Currently, Flink employs around 13,000 people, but with the massive layoffs, that number will be significantly reduced.
Flink is also reportedly seeking additional funding to address its financial challenges. Insiders claim that the food delivery service, known for its signature pink branding, is looking to raise 200 million euros, with half of the amount already promised. However, it is anticipated that Flink may struggle to maintain its previous post-money valuation of nearly three billion euros.
Flink is focusing only on its core markets in Germany, the Netherlands, and France, with no plans for expansion into other countries. This marks a departure from its previous ambitions, as Flink had aimed to enter markets such as Belgium, Italy, Denmark, and Spain in the past. In fact, instead of expanding, Flink has been vacating dozens of department stores and advertising them on real estate portals in recent months.