Grubhub announced on Feb. 28 that it’s laying off 500 employees as part of its integration with its new owner, Wonder.
CEO Howard Migdal explained in an open letter that to “achieve our ambition, we must prioritize the right work and execute with speed and conviction by reducing management layers, bringing leaders closer to the business, and removing duplication.”
He added that the changes “span all teams” as the company works to align its business with Wonder after the takeover was completed in January.
As of 2024, Grubhub had more than 2,200 full-time employees, meaning the layoffs represent more than 20 percent of the workforce.
Wonder announced its acquisition of Grubhub in November 2024, with the deal closing in early January 2025 for $650 million. That’s a big drop compared to the more than $7 billion Just Eat Takeaway paid for Grubhub in 2021. Grubhub has been struggling to keep up with competitors like DoorDash and Uber Eats when it comes to U.S. market share.
Marc Lore, founder and CEO of Wonder, said the goal is to build a “super app” that brings everything from prepared meals to groceries and meal kits into one place. At the time of the acquisition, Lore said the app would feature a curated selection of Grubhub’s restaurant partners, alongside Wonder’s own food hall offerings and meal kits from Blue Apron—which Wonder acquired in 2023.
Wonder has been growing its food hall business, landing $700 million in funding last year and plans to hit 90 locations in the Northeast by the end of this year. It currently has 38 locations, with 14 more listed as “coming soon,” according to its website.
Amid all the changes, Migdal added, “this will position Grubhub to maximize our potential, create opportunities for leaders at Wonder and Grubhub to take on expanded roles and responsibilities in support of our shared vision, and enable us to focus our resources on our most important business objectives.
