DoorDash Inc. Co-Founder and CEO Tony Xu smiles during The Wall Street Journal Tech Live conference call on Tuesday, October 22, 2019, in Laguna Beach, California, US.
Martina Albertazzi | Bloomberg | Getty Images
Delivery Service Doordash The company is laying off 1,250 corporate employees as part of a cost-cutting effort, driven by a lack of growth and excessive hiring, CEO Tony Xu said. a message to employees on Wednesday.
This news led to a rise of about 5 per cent in the shares of the company.
Joins the ranks of DoorDash Amazon, meta, Twitter, Himachal Pradesh And lyft In implementing job cuts. Hiring in the tech industry ballooned covid pandemic And recent months have seen a drastic decrease as interest rates hit consumer demand and investor confidence.
DoorDash announced a hiring shortfall earlier this year. It had 8,600 corporate employees as of December 31, 2021.
DoorDash goes public in late 2020 In a wildly successful IPO that saw shares soar 80% above initial pricing. In November 2021, it touched a peak valuation of $81.1 billion, despite never turning a profit.
DoorDash will offer 17 weeks of leave to affected employees. The health care will continue till March 2023. For foreign or visa-sponsored workers, the termination date will be March 1, Xu told employees that the decision would give them “as much time as possible to find a new job.”
DoorDash shares are down more than 60% year to date.