Grubhub, a food-delivery platform, has recently terminated approximately 400 employees, which accounts for 15% of its corporate workforce.

The CEO of the company has stated that this decision was made in order to sustain a competitive edge. This message was conveyed to the employees on Monday.

As per the findings of Bloomberg Second Measure, the company has encountered difficulties in acquiring a substantial market share, trailing considerably behind its rivals such as Uber Eats and DoorDash.

Grubhub has announced its intention to provide its personnel with a minimum of 16 weeks of severance pay. However, the company has refrained from divulging any details regarding the specific groups or positions that have been affected.

In a memorandum, CEO Howard Migdal stated that while the company has a strong foundation and promising prospects, difficult choices must be made to sustain competitiveness, provide optimal service to diners and partners, and achieve long-term success.

In 2021, the Dutch multinational Just Eat acquired the erstwhile publicly traded company. The valuation of Grubhub in the all-stock transaction amounted to $7.3 billion.

Just Eat Takeaway has announced its intention to explore the possibility of partially or fully divesting Grubhub, less than a year after the acquisition was finalized. At present, there has been no prompt response from a Grubhub representative to a CNBC inquiry regarding the possible correlation between the layoffs and an ongoing sale process.


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