Grubhub, the US-based food delivery company, has announced a major workforce reduction, laying off approximately 500 employees—over 20% of its staff. This move comes just weeks after the company was acquired by its competitor, Wonder, and is part of a broader restructuring strategy aimed at streamlining operations and integrating with its new parent company.
CEO Howard Migdal confirmed the layoffs in a blog post, stating that employees across all departments would be affected. Grubhub, which employed more than 2,200 full-time workers as of 2024, is undergoing significant changes following its acquisition.
The decision follows Just Eat Takeaway’s sale of Grubhub to Wonder for $650 million. The European food delivery giant had initially purchased Grubhub for several billion dollars but later struggled with slowing growth and high taxes in the US market, leading to efforts to divest the business. The sale marked a considerable financial loss for Just Eat Takeaway after its unsuccessful attempt to establish a strong foothold in the American market.
Migdal assured affected employees that Grubhub would provide severance packages and job placement services to help ease their transition. "Our priority is to support you through this transition and treat you with the respect you have earned and deserve," he wrote.
As part of its restructuring under Wonder’s leadership, Grubhub has scheduled a town hall meeting in March to outline its 2025 strategy and future direction. Despite the layoffs, the company is continuing to explore innovation, recently partnering with autonomous technology startup Avride to introduce robotic food deliveries on college campuses across the US.
