US-based online food ordering company Grubhub has announced to lay off about 15 percent of its workforce, or nearly 400 employees, to maintain “competitiveness” in the market.

“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.

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Explaining the decision to lay off, the company said its operating and employee costs grew at a higher rate.

“Rightsising the business for where we are now” which includes ensuring we have the right resources and organizational 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, music streaming platform Spotify has laid off 200 employees, 2 percent of its workforce, from its podcast division as part of a corporate reorganization.

In January this year, Spotify slashed 6 percent of its workforce, or about 600 staffers, globally.

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