GrubHub laid off 500 staff — 20% of its workforce — lower than two months after the meals supply service was acquired by meals app supply rival Marvel.
Grubhub’s chief government, Howard Migdal, addressed staff in a weblog submit at 7 a.m. Friday.
“We’ve made the difficult decision to eliminate approximately 500 positions at Grubhub,” Migdal mentioned within the submit. “These changes span all teams as we begin to integrate functions with Wonder.”
Workers have been requested to earn a living from home Friday because the newly mixed firm revealed information about restructuring “that will impact the number of roles we’ll have at GrubHub,” in accordance with a web-based submit in regards to the cuts.
“We know this is tough news to hear and will likely cause some uneasiness for the rest of the today. Our intention is to be transparent and inform everybody of these actions in advance to help you prepare.”
In November, Marvel introduced a deal to accumulate GrubHub from Simply Eat Takeaway.com for $650 million. The sale, accomplished Jan. 7, was a large haircut for the Amsterdam firm which purchased GrubHub for $7.3 billion.
Marvel was based by serial tech entrepreneur Marc Lore — whose famously profitable startups have included Diapers.com and Jet.com, acquired by Amazon and Walmart, respectively. Marvel payments itself as a “new kind of food hall” that delivers made-to-order meals from well-known cooks and eating places.
A GrubHub spokesperson mentioned in an announcement, “18 months ago, we launched a plan to accelerate growth and return to positive free cash flow. We’re proud that we achieved positive free cash flow in 2024 and that we have returned to growth. We have good momentum, and today’s reorganization will allow us to continue maximizing our potential by increasing investments to fuel growth.”
