400 employees, or 15% of corporate workforce
The Grubhub emblem displayed on a smartphone display.
Rafael Henrique | Sopa Photos | Lightrocket | Getty Photos
Meals-delivery platform Grubhub laid off round 400 workers, or 15% of its company workforce, citing a necessity to keep up “competitiveness,” the corporate’s CEO mentioned in a message to workers Monday.
The corporate has struggled to seize market share, lagging considerably in comparison with opponents like Uber Eats and DoorDash, in response to analysis from Bloomberg Second Measure.
Grubhub mentioned it might provide workers a minimal of 16 weeks severance however declined to touch upon particular teams or positions that have been impacted.
“There isn’t any doubt in anyway that we’ve got a stable basis in place and an immense alternative forward of us – however it’s also clear that we have to make some powerful choices in an effort to keep our competitiveness, ship the very best service for diners and our different companions, and achieve success for the long-term,” CEO Howard Migdal mentioned in his memo.
The one-time public firm was acquired by the Dutch multinational Simply Eat Takeaway.com in 2021. The all-stock transaction valued Grubhub at $7.3 billion.
Lower than a yr after the deal closed, Simply Eat Takeaway mentioned it was exploring the “partial or full sale” of Grubhub. A spokesperson for Grubhub didn’t instantly reply to a CNBC inquiry about whether or not the layoffs have been linked to a possible sale course of.