The US online food ordering and delivery platform, Grubhub, reported this week that it will lay off some 400 corporate employees, due to the constant increase in prices due to inflation and falling sales.
According to the company, this cut represents about 15% of its workforce. “As a result, today we have made the very difficult decision to reduce headcount at Grubhub,” said the CEO of the food delivery brand, Howard Migdal.
According to Migdal, the company needs to take some tough decisions right now to keep up with the competition and provide customers with the best service, he told his staff in a letter.
The CEO also added that the workers who will be affected by this wave of layoffs will be notified in the next few hours, he said. “Our business has grown from pre-pandemic levels in 2019, but our operating and personnel costs have also increased at a faster rate,” he said.
This would not be the first company to announce cuts this year on their payroll, many technology, goods, and services companies have decided to lay off a number of employees among other things to reduce expenses.
On the other hand, Migdal pointed out that belonging to “a highly competitive and constantly evolving industry, we need to continuously analyze if we are configured in the correct way to deliver to our diners, restaurants, and delivery partners”, he said.