Food ordering and delivery platform GrubHub has announced that it will be laying off 400 of its employees or 15% of its workforce due to higher operating and staff costs.
The company noted that the employees impacted by the decision will be notified over the next several hours.
In a letter to company employees, Grubhub CEO Howard Migdal said: “This is really tough news to share, and I know it will come as a shock to you.
“I wanted to be the first to let you know our reasons why, explain how we will support everyone through this transition and what happens next and talk about the future of our business.
“Rightsizing the business for where we are now – which includes ensuring we have the right resources and organisational 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.”
Migdal explained that the decision would allow the company to maintain its competitiveness, deliver the best possible service for diners and our other partners, and be successful in the long term.
He added: “To those who are leaving, I want to sincerely thank you for your hard work and dedication to the company. This is by no means a reflection on anyone’s efforts and Grubhub would not be the business it is without your contributions.”
Last December, DoorDash decided to lay off 1,250 employees to reduce rising operating expenses. It said that it will offer 17 weeks of compensation to all employees impacted by the decision.
