GrubHub Laying Off 400 Workers

Chicago-based food delivery company GrubHub is laying off 400 employees, announcing in a letter to its employees that its operating costs have outpaced its growth since before the pandemic.

GrubHub CEO Howard Migdal wrote that the layoffs amount to about 15% of its workforce.

"There is no doubt whatsoever that we have a solid foundation in place and an immense opportunity ahead of us – but it is also clear that we need to make some tough decisions in order to maintain our competitiveness, deliver the best possible service for diners and our other partners, and be successful for the long-term," Migdal told employees in the letter. "This is really tough news to share, and I know it will come as a shock to you. I wanted to be the first to let you know our reasons why, explain how we will support everyone through this transition and what happens next, and talk about the future of our business."

Migdal said GrubHub was notifying affected employees of the layoffs on Monday.

"We operate in a highly competitive and constantly evolving industry, and we need to continually look at whether we are set up in the right way to deliver for our diners, restaurants and delivery partners. While our business has grown since our 2019 pre-pandemic levels, our operating and staff costs have increased at a higher rate," he wrote. "Rightsizing the business for where we are now – which includes ensuring we have the right resources and organizational structure focused on the right priorities – will allow us to be more agile, make bolder bets and take advantage of all of the opportunities on our doorstep."

First published on June 12, 2023 / 1:45 PM

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