DoorDash will let go of 1250 corporate workers.
DoorDash will let go of 1250 corporate workers. DoorDash, the newest tech company to reduce staff in recent weeks, announced on Wednesday that it will let go of approximately 1,250 corporate employees after expanding its team too quickly during the pandemic.
According to a company spokesperson, the layoffs affect about 6% of DoorDash’s workforce.
In an early Wednesday memo to staff, DoorDash CEO Tony Xu announced the layoffs and referred to them as “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.”
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Xu continued, “If you are among those impacted, I am truly sorry and I apologize that some of you woke up to this news rather than reading it during more appropriate hours.
DoorDash experienced a pandemic boom similar to other tech companies as more consumers embraced online deliveries and avoided stores and restaurants due to the health crisis. In response to audience feedback, DoorDash, according to Xu, “sped up our hiring to catch up with our growth and started many new businesses.”
We were not as strict as we should have been in managing our team growth, Xu wrote, even though “most of our investments are paying off.” That’s on me, he continued. Operating costs consequently increased quickly.
The tech sector has recently seen a wave of layoffs as businesses respond to rising inflation, fears of an impending recession, and changes in pandemic demand. Significant job cuts have been announced by Meta, Twitter, and Amazon, with the heads of some of these companies admitting that they misread the pandemic demand.
Xu acknowledged the changing economic environment in his memo. In his essay, he stated that “we too are not immune to the external challenges” and that “growth has tapered vs our pandemic growth rates.”
Over 60% of the company’s shares have decreased in value this year.
