Grubhub Layoffs Just Slashed 500 Jobs!

Well, this is rough. Less than two months after Grubhub was acquired by food delivery rival Wonder, the company slashes 500 jobs across all teams. That’s a huge chunk of its workforce, and it’s clear that major changes are happening behind the scenes.

Grubhub’s CEO Howard Migdal broke the news in a blog post, saying that the layoffs are part of a bigger effort to streamline operations and cut duplicate roles as the company integrates with Wonder.

Basically, they're trimming the fat to make things “more efficient,” but let’s be real for once, this is a tough hit for employees who had no idea this was coming when almost every other company is laying off employees just because the AI is already disrupting the world's job markets.

Here's what he said:

In order to achieve our ambition, we must prioritize the right work and execute with speed... As a result, we’ve made the difficult decision to eliminate approximately 500 positions at Grubhub.

The move isn’t entirely surprising, though. When Wonder officially bought Grubhub in January 2025, it was clear that changes were on the horizon and the first change would be to fire some employees.

The company is on a mission to build a vertically integrated food delivery empire, meaning they want to control everything from the kitchen to your doorstep. And unfortunately, that often means job cuts.

For those keeping score, Grubhub’s ownership history has been a rollercoaster. Just Eat Takeaway bought Grubhub in 2021 for $7.3 billion—a deal that turned out to be a disaster. Fast forward to 2025, and Wonder scooped it up for just $650 million—a massive loss for Just Eat but a fresh start for Wonder and a chance for them to capitalize on an already well-known brand.

According to Migdal, affected employees will get severance and outplacement services, but we all know that’s corporate-speak for “good luck out there.” It’s tough seeing yet another round of layoffs in the tech and gig economy space, but it’s becoming an all-too-common trend.

Wonder, led by former Jet.com founder Marc Lore, is trying to reinvent food delivery by not just delivering meals but also making them in their own network of kitchens (maybe it is also an effort to cut the costs).

However, that’s a big shift from Grubhub’s traditional marketplace model, which relied on partnering with local restaurants. If Wonder pulls this off, it could change the game—but at what cost? who knows?

For now, all eyes are on how this merger shakes out. One thing is clear, though: the food delivery wars are far from over, and this latest move shows that survival means sacrifice—for companies and employees alike.