Grubhub to cut 500 jobs following acquisition by Wonder

Grubhub, the US-based food delivery service, is set to lay off 500 employees, representing a 20% reduction in its workforce.

The job cuts come after Grubhub’s recent acquisition by Wonder, a New York-based startup, for $650 million.

CEO Howard Migdal explained that the layoffs are part of a broader strategy to streamline operations and strengthen the business.

“Since we closed the transaction with Wonder, we have been aligning on how our businesses work together to achieve our ambitious mission of becoming the primary destination for mealtime,” he said.

“In order to achieve our ambition, we must prioritise the right work and execute with speed and conviction by reducing management layers, bringing leaders closer to the business, and removing duplication.”

The job cuts aim to more effectively integrate Grubhub with Wonder’s operations and create new leadership opportunities across both companies.

Grubhub, which previously employed around 2,200 people, will provide severance packages and job placement assistance to those affected.

This announcement follows a previous round of job cuts in June 2023, where Grubhub reduced its staff by 400 as part of cost-cutting measures after Migdal’s appointment as CEO.

Despite the layoffs, Grubhub continues to expand, partnering with autonomous technology startup Avride to introduce delivery robots on US college campuses to address workforce shortages.

Grubhub serves over 375,000 merchants across 4,000 US cities, helping restaurants grow their businesses and explore new concepts.