By Ovunc Kutlu
ISTANBUL (AA) – American online food ordering and delivery platform Grubhub announced Monday that it has decided to reduce its workforce around 15% by laying off approximately 400 employees.
"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," CEO Howard Migdal said in a statement.
He added that the company's operating and staff cost has increased at a higher rate since 2019 before the COVID-19 pandemic.
Migdal said employees who are impacted by the decision will be notified over the next several hours.
Dozens of companies, especially in the technology sector, have been cutting jobs, as many industries are struggling with lower income, falling advertisement revenue, and fears of a recession.
In recent months, Reddit, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, PayPal, and Google's parent company, Alphabet, have laid off workers by thousands.