The Grubhub brand displayed on a smartphone display screen.
Rafael Henrique | Sopa Pictures | Lightrocket | Getty Pictures
Meals-delivery platform Grubhub laid off round 400 workers, or 15% of its company workforce, citing a necessity to keep up “competitiveness,” the corporate’s CEO stated in a message to workers Monday.
The corporate has struggled to seize market share, lagging considerably in comparison with rivals like Uber Eats and DoorDash, based on analysis from Bloomberg Second Measure.
Grubhub stated it will supply workers a minimal of 16 weeks severance however declined to touch upon particular teams or positions that had been impacted.
“There isn’t any doubt in any respect that we have now a stable basis in place and an immense alternative forward of us – however it is usually clear that we have to make some powerful selections with the intention to keep our competitiveness, ship the absolute best service for diners and our different companions, and achieve success for the long-term,” CEO Howard Migdal stated in his memo.
The one-time public firm was acquired by the Dutch multinational Simply Eat Takeaway.com in 2021. The all-stock transaction valued Grubhub at $7.3 billion.
Lower than a yr after the deal closed, Simply Eat Takeaway stated it was exploring the “partial or full sale” of Grubhub. A spokesperson for Grubhub didn’t instantly reply to a CNBC inquiry about whether or not the layoffs had been related to a possible sale course of.