15% layoffs at Grubhub; around 400 jobs impacted


Grubhub, a prominent food delivery platform, recently made headlines with its decision to lay off around 400 employees, representing approximately 15 per cent of its corporate workforce. The rationale behind these layoffs, as stated by the CEO, was the necessity to uphold competitiveness within the fiercely competitive food delivery market.

Grubhub has encountered difficulties in capturing a significant market share, finding itself lagging behind key competitors such as Uber Eats and DoorDash, as indicated by research conducted by Bloomberg.

In an effort to support affected employees during this transition, Grubhub has announced plans to offer a minimum severance package of 16 weeks. However, specific details regarding the groups or positions impacted by the layoffs have not been disclosed by the company. CEO Howard Migdal, while acknowledging the challenges faced, expressed confidence in Grubhub’s strong foundation and highlighted the immense potential for future growth and success. The tough decisions made were deemed necessary to maintain competitiveness, deliver exceptional service to diners and partners, and ensure long-term viability.

Grubhub, which previously operated as a publicly traded company, was acquired by the Dutch multinational firm Just Eat Takeaway.com in 2021.

This acquisition, valued at $7.3 billion, initially brought high expectations. However, less than a year later, Just Eat Takeaway announced its exploration of a potential ‘partial or full sale’ of Grubhub. The connection between these recent layoffs and the potential sale process remains uncertain, as Grubhub has yet to respond to inquiries from CNBC seeking clarification on this matter.

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