Food-Delivery Service Grubhub to Lay Off About 15% of Workforce to Reduce Costs

Grubhub will lay off roughly 15% of its workforce as the food-delivery service seeks to cut rising costs, the company said on Monday.

(Bloomberg) — Grubhub will lay off roughly 15% of its workforce as the food-delivery service seeks to cut rising costs, the company said on Monday.

“While our business has grown since our 2019 pre-pandemic levels, our operating and staff costs have increased at a higher rate,” Chief Executive Officer Howard Migdal said in a memo to employees. “These changes, while difficult, will help ensure we have the right resources and structure to focus on the business priorities and opportunities ahead.”

The news was first reported by the Wall Street Journal.

The reduction in jobs, which affects about 400 people, reflects the growing turmoil at the Chicago-based company. Grubhub’s former CEO, Adam DeWitt, stepped down in March. Grubhub, which is owned by Amsterdam-based JustEatTakeaway.com NV, has struggled to fend of competition from rivals DoorDash Inc. and Uber Technologies Inc. 

Demand for takeout has remained strong even as the pandemic-boom subsided, but Grubhub has only lost ground. Grubhub and its subsidiaries, which include Seamless and Eat24, comprised only 9% of US meal delivery consumer spending as of April, according to Bloomberg Second Measure.

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