US-based food ordering and delivery partner Grubhub is set to reduce its workforce by more than 20%, impacting 500 employees.
The move follows the company’s recent acquisition by Wonder, a New York-based food delivery startup, for $650m.
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Grubhub CEO Howard Migdal stated: “Since we closed the transaction with Wonder, we have been aligning on how our businesses work together to achieve our ambitious mission of becoming the primary destination for mealtime.
“In order to achieve our ambition, we must prioritise the right work and execute with speed and conviction by reducing management layers, bringing leaders closer to the business, and removing duplication.”
The layoffs are part of a strategy to maximise the company’s potential and integrate the two businesses effectively.
The job cuts at Grubhub will span across all teams as the company seeks to align with Wonder’s operations.
Severance packages and job placement assistance will be provided to those affected.
The decision is also aimed at fostering leadership opportunities within both Grubhub and Wonder. Prior to the layoff announcement, Grubhub had a workforce of about 2,200.
In a recent initiative, Grubhub partnered with autonomous technology startup Avride to introduce delivery robots on college campuses throughout the US. The move aims to address workforce shortages and reduce reliance on traditional vehicles.
In June 2023, Grubhub reduced its staff by 400 due to escalating costs, shortly after the appointment of its new CEO Howard Migdal.
Grubhub features 375,000 merchants in more than 4,000 US cities. It helps restaurants expand their businesses and experiment with new concepts.
