The Grubhub brand displayed on a smartphone display.
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Meals supply platform Grubhub laid off about 400 staff, or 15% of its company staff, bringing up a want to handle “competitiveness,” the corporate’s CEO stated in a message to staff Monday.
The corporate has struggled to seize marketplace proportion, lagging considerably when put next with competition comparable to Uber Eats and DoorDash, in step with analysis from Bloomberg 2nd Measure.
Grubhub stated it could be offering staff no less than 16 weeks severance however declined to touch upon explicit teams or positions that have been affected.
“There is not any doubt in any respect that we have got a cast basis in position and an immense alternative forward people — however it is usually transparent that we want to make some tricky choices in an effort to handle our competitiveness, ship the most productive conceivable carrier for diners and our different companions, and achieve success for the long-term,” CEO Howard Migdal stated in his memo.
The only-time public corporate was once bought through the Dutch multinational Simply Consume Takeaway.com in 2021. The all-stock transaction valued Grubhub at $7.3 billion.
Lower than a yr after the deal closed, Simply Consume Takeaway stated it was once exploring the “partial or complete sale” of Grubhub. A spokesperson for Grubhub didn’t right away reply to a CNBC inquiry about whether or not the layoffs have been attached to a possible sale procedure.