Grubhub lays off 15% of its workforce, approximates to 400 people

(NBC, KYMA/KECY) - Food delivery platform Grubhub is laying off 15% of its corporate workforce. The cut will mean the loss of roles for approximated 400 people.

In a letter to employees on Monday, Grubhub CEO Howard Migdal cited the need to to "maintain competitiveness" for the layoff, saying that operating and staff costs have increased at a higher rate.

Grubhub has struggled to gain market share from rival companies such as DoorDash or Uber Eats, even after it was acquired by the dutch multinational JustEatTakeaway.com in 2021.

The company said it would offer employees a minimum of 16 weeks severance, but declined to comment on specific groups or positions that were affected.