DoubleLine Deputy CIO Jeffrey Sherman predicts that the Fed will hike rates to avoid “upsetting the market.”
Grubhub announced Monday that the company is cutting 15% of its workforce in an effort to ensure long-term viability in its highly competitive sector.
CEO Howard Migdal, who took over in March, told employees in a letter Monday that the company will let go of approximately 400 employees as it works to rightsize its business “for where we are now.”
Although the business has grown since 2019 pre-pandemic levels, Migdal said operating and staff costs have increased at a higher rate. Rightsizing the organization will help it become “more agile, make bolder bets and take advantage of all of the opportunities on our doorstep,” according to Migdal.
OVER 25,000 GLOBAL TECH WORKERS LAID OFF SINCE START OF 2023
“There is no doubt whatsoever that we have a solid foundation in place and an immense opportunity ahead of us – but it is also clear that we need to make some tough decisions in order to maintain our competitiveness, deliver the best possible service for diners and our other partners, and be successful for the long-term,” Migdal wrote.
We Deliver, DoorDash, Grubhub and Uber Eats signs are seen on a restaurant door in New York City. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Since assuming the role as CEO for the online food delivery platform, replacing Adam DeWitt, Migdal said he has worked with Grubhub teams “to learn about the business from the ground up.”
LAYOFFS ARE ON THE RISE, BUT NEARLY 50% OF WORKERS ARE STILL LOOKING TO QUIT IN 2023
Part of this process included speaking with restaurants and diners to better understand their needs and the challenges they face when using the service. Migdal also “spent substantial time with the leadership team looking into our opportunities for growth,” he added.
As a result, Migdal decided to reduce headcount at the company, which was acquired by Just Eat Takeaway.com in 2021.
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However, the company isn’t the only delivery platform reining in costs amid the uncertain environment. In November, DoorDash announced it was laying off 1,250 corporate employees to reduce operating expenses.
CEO Tony Xu apologized to affected employees in a blog post, saying that this is the “most difficult change to DoorDash” that he has had to announce in its nearly 10-year history.
