Grubhub, an American online food ordering company, has recently revealed its decision to downsize its workforce by approximately 15 percent, resulting in the termination of nearly 400 employees. The company cites the aim of preserving its “competitiveness” within the market as the primary reason behind this move.
“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,” Howard Migdal, Grubhub CEO, said in a message to employees on Monday.
Grubhub justified its decision to implement layoffs by pointing out that its operating and employee costs had experienced a significant growth rate.
“Rightsising the business for where we are now a” which includes ensuring we have the right resources and organisational structure focused on the right priorities – will allow us to be more agile, make bolder bets and take advantage of all of the opportunities on our doorstep,” Migdal stated.
Meanwhile, in a move related to corporate restructuring, Spotify, the music streaming platform, has made the decision to lay off 200 employees from its podcast division. This reduction in workforce accounts for approximately 2 percent of the total employees working at Spotify.
Back in January of this year, Spotify implemented a workforce reduction globally, resulting in the termination of approximately 600 employees, which constituted around 6 percent of its total workforce.