Grubhub Cuts 23% of Staff

Grubhub Cuts 23% of Workforce Amid Major Changes Following Takeover by Wonder Group

Job Cuts and Restructuring

Grubhub, a leading food delivery and online ordering platform, has announced that it will be cutting approximately 23% of its workforce, or around 500 positions. The move is part of a broader restructuring effort aimed at integrating the company with its new owner, Wonder Group, following a takeover in November.

CEO’s Message to Employees

In a message to employees, Grubhub’s CEO, Howard Migdal, stated, "We’ve made the difficult decision to eliminate approximately 500 positions at Grubhub. These changes span all teams as we begin to integrate functions with Wonder."

Background on the Takeover

Wonder Group, owned by former Walmart executive Marc Lore, acquired Grubhub from Just Eat Takeaway.com NV in November for approximately $650 million, representing a 90% discount to its pandemic peak. Wonder operates first-party restaurants through its ghost-kitchen facilities, third-party food delivery under Relay, and Blue Apron’s prepared meals and grocery service.

Restructuring Efforts

The company is planning a town hall in March to discuss its strategy for 2025 and the path forward. Migdal emphasized that the cuts are aimed at "reducing management layers, bringing leaders closer to the business, and removing duplication."

Financial Performance

Despite the challenges, Grubhub has shown positive free cash flow in 2024 and has seen year-over-year growth in order volume in the first two months of 2025. The company has also experienced a "significant lift in order frequency" in its loyalty program tie-up with Amazon Prime.

New Partnerships and Growth

Grubhub has added 90,000 new merchants over the past 18 months, including convenience and grocery options like Albertsons, CVS, and Walgreens. The company is positioned well within Wonder, said Katie Norris, a company spokesperson, and will remain a standalone brand.

Conclusion

Grubhub’s decision to cut 23% of its workforce is a significant step in its efforts to integrate with its new owner, Wonder Group. While the move may be challenging for some employees, it is aimed at streamlining operations and positioning the company for future growth and success.

FAQs

Q: How many jobs are being cut at Grubhub?
A: Approximately 500 positions, or 23% of the company’s workforce.

Q: Why is Grubhub making these cuts?
A: The company is integrating with its new owner, Wonder Group, and is aiming to reduce management layers, bring leaders closer to the business, and remove duplication.

Q: What is Wonder Group’s business strategy?
A: Wonder Group operates first-party restaurants through its ghost-kitchen facilities, third-party food delivery under Relay, and Blue Apron’s prepared meals and grocery service.

Q: How is Grubhub performing financially?
A: The company achieved positive free cash flow in 2024 and has seen year-over-year growth in order volume in the first two months of 2025.