What’s going on:
Grubhub, a Chicago-based food delivery platform, has laid off approximately 400 corporate employees, which accounts for 15% of its workforce, according to CNBC. The company’s CEO, Howard Migdal, posted a letter on Grubhub’s website where he cited the need to maintain competitiveness as the primary reason for the layoffs.
Why it matters:
As one of the major players in the food delivery industry, Grubhub’s decision suggests potential shifts and challenges within the gig economy. The move may be indicative that Grubhub is reassessing its business model, and this could lead to changes in how the company engages with gig workers. Reduced corporate staff could lead to fewer support roles for gig workers or perhaps even changes in how they are managed and supported.
Grubhub has reportedly been struggling to capture market share compared to its competitors like Uber Eats and DoorDash. These layoffs could signal further changes within the industry and may impact job security for those working in similar roles at other companies.
How it’ll impact the future:
The layoffs at Grubhub could potentially lead to a reshuffling of the food delivery market, which relies heavily on gig economy workers. As Grubhub and other food delivery platforms continue to face stiff competition and challenging economic factors, the future for the workforce in this industry becomes more uncertain.
Just Eat Takeway, a Netherlands-based company, is exploring a partial or full sale of Grubhub less than a year after acquiring the company, according to CNBC. This could result in further consolidation within the industry, which would impact additional workers in this sector.