GrubHub laid off 500 employees — 20% of its workforce — less than two months after the food delivery service was acquired by food app delivery rival Wonder.
Grubhub’s chief executive, Howard Migdal, addressed employees in a blog post at 7 a.m. Friday.
“We’ve made the difficult decision to eliminate approximately 500 positions at Grubhub,” Migdal said in the post. “These changes span all teams as we begin to integrate functions with Wonder.”
Employees were asked to work from home Friday as the newly combined company revealed news about restructuring “that will impact the number of roles we’ll have at GrubHub,” according to an online post about 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, Wonder announced a deal to acquire GrubHub from Just Eat Takeaway.com for $650 million. The sale, completed Jan. 7, was a massive haircut for the Amsterdam company which bought GrubHub for $7.3 billion.
Wonder was founded by serial tech entrepreneur Marc Lore — whose famously successful startups have included Diapers.com and Jet.com, acquired by Amazon and Walmart, respectively. Wonder bills itself as a “new kind of food hall” that delivers made-to-order meals from well-known chefs and restaurants.
A GrubHub spokesperson said in a statement, “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.”
