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The Grubhub logo is displayed on the smartphone screen.
Rafael Henrique | Soba photos | Light Rocket | Getty Images
Grubhub CEO said food delivery platform Grubhub has laid off about 400 employees, or 15% of the company’s workforce, citing the need to stay “competitive.” message for the two employees.
The company has struggled to capture market share, lagging significantly compared to competitors such as Uber eats f DoorDashaccording research From the second Bloomberg Scale.
Grubhub said it would offer employees a minimum of 16 weeks leave, but declined to comment on specific groups or positions that were affected.
“There is absolutely no doubt that we have a solid foundation and an enormous opportunity ahead of us – but it is also clear that we need to make some tough decisions in order to remain competitive, and provide the best possible service to diners and our partners,” CEO Howard Migdahl said in his note. others, and be successful in the long run.”
The one-time public company has been acquired by Dutch multinational Just Eat Takeaway.com in 2021. The value of the all-stock Grubhub deal was $7.3 billion.
Less than a year after closing the deal, Just Eat Takeaway said it was exploring a “partial or complete sale” of Grubhub. A Grubhub spokesperson did not immediately respond to CNBC’s inquiry about whether the layoffs were related to a potential sale.
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