CNN
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DoorDash announced Wednesday that it will lay off about 1,250 corporate employees as it rapidly expanded its team during the pandemic.
The job cuts represent about 6% of DoorDash’s workforce, according to a company spokesperson.
DoorDash CEO Tony Xu shared the news of the layoffs in a memo to staff early Wednesday, writing, “In almost 10 years of history, I have had to announce the most to DoorDash. “Difficult change,” he called it.
“If you are among those affected, I am truly sorry that some of you are waking up to this news instead of reading it during normal hours,” Xu added.
DoorDash, like other tech companies, experienced the pandemic boom. Amid the health crisis, more consumers embraced online delivery and shunned stores and restaurants. Xu said DoorDash “accelerated hiring to keep up with our growth and launched many new businesses in response to feedback from our viewers.”
“Most of our investments have paid off,” wrote Xu. He added: As a result, operating expenses increased rapidly. ”
A wave of layoffs has swept across the tech industry in recent days as companies respond to rising inflation, looming recession fears, and changing demand in the pandemic. Meta, Twitter, and Amazon have all announced significant job cuts, and some leaders at these companies have admitted that they misread the demands of the pandemic.
In the memo, Mr. Xu nodded at the changing economic climate. “Neither are we immune to external challenges, and growth has slowed to the rate of the pandemic,” he wrote.
DoorDash stock is down more than 60% so far this year.
