Grubhub lays off about 15 pct of workforce-Xinhua

Grubhub lays off about 15 pct of workforce

Source: Xinhua| 2023-06-13 04:46:15|Editor:

CHICAGO, June 12 (Xinhua) -- Food delivery platform Grubhub based in the U.S. city of Chicago has laid off 400 employees, or about 15 percent of its workforce, the company said Monday.

"After much consideration and evaluation of our business, we have made the difficult decision to reduce Grubhub's workforce by 15 percent, impacting approximately 400 of our corporate employees," the company spokesperson said in a written statement.

"These changes will enable Grubhub to invest in the growth of our core business and better position the company for long-term success," according to the statement.

Before the job cuts, Grubhub had 2,800 employees, with 850 of them working in Chicago, the Chicago Tribune reported Monday. Amsterdam-based Just Eat Takeaway purchased Grubhub in a 7.3-billion-U.S.-dollar deal in 2021.

Market share of Grubhub has been falling in recent years. As of May 2022, Grubhub had 11 percent of food delivery sales, while DoorDash held 57 percent and Uber Eats had 31 percent, local media quoted market research firm YipitData. In 2019, Grubhub had controlled nearly one third of all sales.

Grubhub is not the only one of the trade that seeks to cut operating costs by layoff. DoorDash said in November it was laying off about 1,250 employees, about 6 percent of its workforce.