Home News Grubhub Implements Workforce Reduction, Cutting 15% of Employees

Grubhub Implements Workforce Reduction, Cutting 15% of Employees

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The wave of layoffs in the technology industry continues, with Grubhub being the latest company to make significant staff cuts. CEO Howard Migdal announced today that approximately 400 employees, which accounts for 15% of the corporate workforce, will be let go as part of the company’s restructuring efforts. The objective behind these layoffs is to maintain Grubhub’s competitiveness within the market.

Migdal expressed his commitment to understanding the company’s operations firsthand by engaging with Grubhub teams, conversing with restaurants and diners, and comprehending their needs and challenges when utilizing the service. Affected employees will be notified about their status in the upcoming hours. Migdal acknowledged the challenging circumstances for all employees and assured them that further information regarding “our future together” will be provided in the coming days.

Earlier this year, in March, the previous CEO of Grubhub, Adam DeWitt, announced his resignation effective May, citing mounting economic pressures. With Migdal assuming the position of CEO, it is not surprising that his initial course of action involves reducing operational costs due to the ongoing economic challenges.

Grubhub joins the list of delivery services implementing employee cuts, following DoorDash’s announcement last year that nearly 1,300 employees would be laid off due to escalating operating expenses. DoorDash’s CEO, Tony Xu, explained that the company had ramped up hiring during the pandemic, resulting in operating expenses surpassing sales.

A notable difference between DoorDash and Grubhub is that the former provided laid-off employees with 13 weeks of compensation and four weeks of severance pay. Grubhub’s recent announcement, however, did not mention any form of compensation or severance pay for the affected employees.

Frequently Asked Questions (FAQs) about layoffs

What is the reason behind Grubhub’s decision to lay off employees?

Grubhub has decided to lay off employees in order to reduce operating costs and maintain competitiveness in the market amidst challenging economic conditions.

How many employees will be affected by the layoffs at Grubhub?

Approximately 400 employees, which accounts for 15% of Grubhub’s corporate workforce, will be affected by the layoffs.

Will the affected employees receive any compensation or severance pay?

Grubhub’s announcement did not mention any specific compensation or severance pay for the employees being laid off.

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TechGeek91 June 13, 2023 - 5:03 am

gr8 article on da layoffs @grubhub. tuff decisions need 2 b made in da biz world. curious how it’ll affect their service tho.

deliveryguy June 13, 2023 - 4:41 pm

oof, doorDash did layoffs too? sounds like delivery apps r havin a ruff time. hope they can bounce back soon.


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