CHICAGO (WGN) — Chicago-based Grubhub is laying off 20 percent of its workforce, amounting to about 500 employees company-wide.
The layoffs come two months after the company was purchased by Wonder, a New York-based food delivery startup, for $650 million.
“Since we closed the transaction with Wonder, we have been aligning on how our businesses work together to achieve our ambitious mission of becoming the primary destination for mealtime,” Grubhub CEO Howard Migdal said in an email to employees obtained by WGN.
Nov. 2024 | Grubhub to be sold to Wonder in $650 million deal
“In order 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,” Migdal wrote. “As a result, we’ve made the difficult decision to eliminate approximately 500 positions at Grubhub. These changes span all teams as we begin to integrate functions with Wonder.”
Crain’s Chicago Business reported Friday that about 150 of the job cuts will be among Chicago employees. Those impacted will receive severance and job placement assistance, the company said.
Grubhub launched in Chicago 20 years ago and went public in 2014. In 2021, an Amsterdam-based company bought the company for more than $7 billion. The deal was not a match for either organization, so it was sold again.
Grubhub is now based at the Merchandise Mart.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to WGN-TV.