Grubhub will lay off roughly 15% of its workforce as the food-delivery service seeks to cut rising costs, the company said on Monday.
"While our business has grown since our 2019 pre-pandemic levels, our operating and staff costs have increased at a higher rate," chief executive officer Howard Migdal said in a memo to employees. "These changes, while difficult, will help ensure we have the right resources and structure to focus on the business priorities and opportunities ahead."
Read more:
The news was first reported by the Wall Street Journal.
The reduction in jobs, which affects about 400 people, reflects the growing turmoil at the Chicago-based company. Grubhub's former CEO, Adam DeWitt, stepped down in March. Grubhub, which is owned by Amsterdam-based JustEatTakeaway.com, has struggled to fend of competition from rivals DoorDash and Uber Technologies.
Read more:
Demand for takeout has remained strong even as the pandemic-boom subsided, but Grubhub has only lost ground. Grubhub and its subsidiaries, which include Seamless and Eat24, comprised only 9% of US meal delivery consumer spending as of April, according to Bloomberg Second Measure.
