Grubhub logo displayed on smartphone screen.
Rafael Henrique | Pictures of Sopa | Missile | beautiful pictures
Food delivery platform Grubhub has laid off about 400 employees, or 15% of the company’s workforce, citing the need to remain “competitive,” the company’s CEO said in a statement. . message employees on Monday.
The company has struggled to capture market share, lagging significantly behind competitors like Uber eat and DoorDashbased on study from Bloomberg’s Second Measure.
Grubhub said it would lay off employees for a minimum of 16 weeks but declined to comment on the specific groups or positions affected.
“There’s no doubt we have a solid foundation and a huge opportunity ahead of us – but it’s clear that we need to make some tough decisions to stay competitive, delivering the best possible service to our diners and other partners and long-term success,” CEO Howard Migdal said in his memo.
The public once the company has been acquired by Dutch multinational Just Eat Takeaway.com in 2021. The all-stock trade values Grubhub at $7.3 billion.
Less than a year after the deal ended, Just Eat Takeaway speak it is exploring the “partial or full sale” of Grubhub. A Grubhub spokesperson did not immediately respond to a CNBC question about whether the layoffs were related to the potential sales process.
