On Friday, Grubhub CEO Howard Migdal announced that the food delivery company will be reducing its workforce by approximately 500 employees to realign its operations following the recent acquisition by Wonder.
Wonder, a food delivery startup led by former Walmart executive Marc Lore, acquired Grubhub last year. At the start of 2024, Grubhub employed over 2,200 full-time workers. The recent layoffs constitute over 20% of the company's staff.
Previously, Grubhub was under the ownership of Europe's largest meal delivery company, Just Eat Takeaway, which sold it for $650 million after attempting to divest the business for two years. The sale came at a significant loss compared to its original purchase price.
In response to sluggish growth and high costs, the Amsterdam-based firm sold Grubhub. Last month, Grubhub announced plans to introduce robot deliveries on college campuses nationwide to address workforce shortages and reduce reliance on traditional vehicle deliveries.