Oops

Grubhub Shares Plunge After C.E.O. Sends Memo Telling Employees Who Share Trump’s Views to Quit

Shareholders didn’t take the news too well.
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By Neilson Barnard/Getty Images for New York Times.

In the wake of the most divisive presidential election in recent U.S. history, leaders of tech companies comforted their employees in different ways. Tim Cook sent Apple employees a note urging them to “move forward together.” Mark Zuckerberg said he was feeling “hopeful” watching the election results with daughter Max. Sherpa Ventures managing director Shervin Pishevar suggested that California secede from the rest of the United States, while 500 Startups founder Dave McClure went on an expletive-laden rant onstage at a tech conference in Portugal.

Matt Maloney, the C.E.O. of Grubhub, took things even further in a company-wide e-mail sent to his employees on Wednesday, asking them to resign if they shared president-elect Donald Trump’s values. “I absolutely reject the nationalist, anti-immigrant and hateful politics of Donald Trump and will work to shield our community from this movement as best as I can,” Maloney said. “If you do not agree with this statement then please reply to this email with your resignation because you have no place here. We do not tolerate hateful attitudes on our team.” Had Trump worked at Grubhub, Maloney said, his actions wouldn’t have been tolerated. “While demeaning, insulting, and ridiculing minorities, immigrants, and the physically/mentally disabled worked for Mr. Trump, I want to be clear that this behavior—and these views—have no place at Grubhub,” he wrote in a memo initially reported by Fox News.

Maloney told Fox News that “almost 20 percent” of employees later thanked him for sending the memo. The markets, however, did not take kindly to Maloney’s noble note, and shares of the Chicago-based food-delivery company plunged 5 percent on Friday. Maloney tells Forbes he hasn’t received any resignation letters, and later clarified his initial memo. “I want to clarify that I did not ask for anyone to resign if they voted for Trump,” he wrote. “I would never make such a demand. To the contrary, the message of the email is that we do not tolerate discriminatory activity or hateful commentary in the workplace, and that we will stand up for our employees.”

Maloney’s remarks resulted in a flurry of angry tweets, with some people claiming they’d never place an order on Grubhub again. Fortunately for those quitting Grubhub in protest, there’s no lack of start-ups willing to deliver a breakfast sandwich to their doorsteps.