Grubhub Is Laying Off Roughly 400 Employees

Grubhub has announced a round of layoffs, impacting roughly 400 employees, or 15% of the company's workforce....
Grubhub Is Laying Off Roughly 400 Employees
Written by Staff
  • Grubhub has announced a round of layoffs, impacting roughly 400 employees, or 15% of the company’s workforce.

    Grubhub CEO Howard Migdal penned a message to employees informing them of the decision to make cuts to the company’s workforce. Migdal says he spent “substantial time” getting to know and understand the company since joining it a few months ago. Despite having a solid foundation, the CEO says layoffs are necessary to improve Grubhub’s competitiveness.

    There is no doubt whatsoever that we have a solid foundation in place and an immense opportunity ahead of us – but it is also clear that we need to make some tough decisions in order to maintain our competitiveness, deliver the best possible service for diners and our other partners, and be successful for the long-term.

    As a result, today we have made the very difficult decision to reduce headcount at Grubhub by around 15%, leading to the loss of roles for approximately 400 of our passionate and talented teammates.

    Migdal says the move is “rightsizing,” not downsizing, and is a reflection of the changing landscape and rising costs.

    We operate in a highly competitive and constantly evolving industry, and we need to continually look at whether we are set up in the right way to deliver for our diners, restaurants and delivery partners. While our business has grown since our 2019 pre-pandemic levels, our operating and staff costs have increased at a higher rate.

    Rightsizing the business for where we are now – which includes ensuring we have the right resources and organizational structure focused on the right priorities – will allow us to be more agile, make bolder bets and take advantage of all of the opportunities on our doorstep.

    The news is not entirely surprising, especially since Grubhub’s rivals have already laid off employees.

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