“We need to make some tough decisions in order to maintain our competitiveness, deliver the best possible service for diners and our other partners, and be successful for the long-term,” the food delivery brand’s CEO Howard Migdal said in a letter that was sent to staff this morning and posted to the Grubhub website. “As a result, today we have made the very difficult decision to reduce headcount at Grubhub,” he said. “I know it will come as a shock to you.
“Our business has grown since our 2019 pre-pandemic levels,” Migdal, who became CEO in March of this year, said in his message to employees. But “our operating and staff costs have increased at a higher rate.” And recently, the appetite for delivery has been waning The Amsterdam-based Just Eat Takeaway.com, which acquired Grubhub in 2021, reported in April that in North America, orders fell by 17% in the first quarter of 2023 compared to the same period the year before.