DoorDash lays off 1,250 employees
Doordash became the latest tech company to lay off staff, with CEO Tony Xu announcing that over 1,200 workers would be laid off as part of broad cost cuts.
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Tony Xu, co-founder and chief executive officer of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, U.S., on Tuesday, Oct. 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
Delivery service DoorDash is laying off 1,250 corporate workers as part of a continued cost-cutting effort, driven by tapering growth and overhiring, CEO Tony Xu said in a message to employees on Wednesday.
The company's shares were up about 5% on the news.
DoorDash joins the ranks of Amazon, Meta, Twitter, HP and Lyft in imposing job cuts. Tech industry hiring ballooned during the Covid pandemic and has seen a harsh comedown in recent months as interest rates mute consumer demand and investor confidence.
DoorDash announced a slowdown in hiring earlier this year. It had 8,600 corporate employees as of Dec. 31, 2021.
DoorDash went public at the end of 2020 in a wildly successful IPO that saw shares soar 80% over initial pricing. In November 2021, it hit a peak valuation of $81.1 billion, despite never turning a profit.
DoorDash will offer 17 weeks of severance to affected employees. Healthcare will continue through March 2023. For overseas or visa-sponsored employees, the termination date will be Mar. 1, a decision that Xu told employees would give them "as much time possible to find a new job." DoorDash will set a termination date of March 2023 for H1-B visa holders, allowing overseas workers as much time as possible to find a new opportunity.
DoorDash shares are down over 60% year-to-date.
