Deliveroo is set to wield the axe by cutting 367 of its employees as it struggles with demand during the coronavirus lockdown.

Fifty Deliveroo employees have also been furloughed as part of the decision, which was shared with employees on Tuesday morning.

The online delivery business has grown to employ more than 2,500 employees since it was started in 2013.

The planned redundancies, which affect employees in several countries, come just over a week after the UK's competition watchdog provisionally approved a $575m (£462m) investment in the business by Amazon.

Regulators had been formally investigating the tie-up over concerns it would damage competition.

A source close to the company said the investment doesn’t dispel concerns about a future recession affecting food delivery demand.

Coronavirus has made it difficult for food delivery businesses such as Deliveroo to predict demand.

The company warned the Competition and Markets Authority (CMA) that a continued freeze on Amazon's investment in the business could trigger its collapse because of a cash squeeze and lack of access to funding.

The watchdog said earlier this month: “Deliveroo recently informed the CMA that the impact of the coronavirus pandemic on its business meant that it would fail financially and exit the market without the Amazon investment.”

Last year Deliveroo was forced to pull out of a market for the first time when it closed its service in Germany and laid off 100 employees. The country's highly competitive food delivery market had led to high operating costs for Deliveroo, which at the time faced uncertainty over whether the Amazon deal would be approved.

A Deliveroo spokesman said: “The extraordinary global health crisis we are living through has impacted nearly all businesses. As a result, like so many others, Deliveroo has had to examine how to overcome the challenges we all face, as well as ensure we are in the strongest position possible following the crisis.

“This requires us to look at how we operate in order to reduce long-term costs, which sadly means some roles are at risk of redundancy and others will be put on furlough. This has been extremely difficult for everyone at the company, and our absolute priority is to make sure those who are impacted are fully supported.”