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Deliveroo is cutting 350 jobs as the tech downturn continues to force the food delivery company to scale back its operations.

The cuts were announced today by Deliveroo chief Will Shu, who cited over-hiring and the cost of living crisis as the reasons for making the layoffs.

The cuts amount to almost one in ten staff at Deliveroo losing their jobs. The decision follows last month’s announcement that the company had broken even in its latest quarterly report, though the company admitted then that more cutbacks might be necessary.

The financial report noted that despite breaking even, the overall number of orders had fallen by around 2%.

It’s been a difficult two years since Deliveroo debuted on the London Stock Exchange. The company has never been profitable, but a slowdown in orders following the end of lockdowns put extra pressure on the firm to reduce costs.

Last year the company exited multiple markets due to “challenging economic conditions”. Deliveroo pulled out of both Australia and the Netherlands as part of Shu’s plan to achieve profitability.

The job cuts mark the latest in a growing list of tech firms scaling back employees. HR startup Beamery and fintech Paddle have both announced layoffs this year in the UK, and in the US, seemingly every tech giant has reduced headcounts. Amazon, Meta, Microsoft, and Google are just some of the most high-profile cases.

A recent survey of UK tech workers conducted by CW jobs found that the majority (53%) were preparing for the possibility of losing their jobs.