Grubhub has fired 500 employees (20% of the workforce) less than two months after the food delivery service was acquired by food app rival Wonder.
Howard Migdal, CEO of Grubhub, spoke to employees in a Blog post Friday at 7am.
“We made the difficult decision to eliminate roughly 500 positions on Grubhub,” Migdal said in a post. “These changes extend to all teams as they start to mysteriously integrate features.”
Employees were asked to work from home on Friday as the newly combined company unveiled news of a restructuring that “it will affect the number of roles on Grubhub.” Online posting About the cut.
“We know this is hard to hear and it's likely to cause anxiety for the rest of today. Our intention is to be transparent and let everyone know these actions in advance to be prepared.”
In November, Wonder announced an agreement to acquire Grubhub from Just Eat Takeaway.com for $650 million. The sale, which was completed on January 7th, was a massive haircut for the Amsterdam company, which acquired Grabbub for $7.3 billion.
Wonder was founded by Serial Technology entrepreneur Mark Lore. The well-known startups include Diapers.com and Jet.com, which were acquired by Amazon and Walmart, respectively. Wonder charges itself as a “new kind of food hall” that serves bespoke meals from well-known chefs and restaurants.
A Grubhub spokesman said in a statement: “Eight months ago, we began planning to accelerate growth and return to positive free cash flow. We are proud to have achieved positive free cash flow in 2024 and have returned to growth. We have good momentum and today's restructuring will allow us to continue to maximize our potential by increasing investments to drive growth.”
