DoorDash Announces Plan to Lay Off 1,250 Employees

DoorDash CEO, Tony Xu, announced on the company’s website on Wednesday that he had made the “painful decision” to reduce the team size by 1,250 workers. 

Xu explained in his update that the layoff is a result of the company growing extremely quickly during the pandemic which led to an increase in operating expenses. 

“The pandemic presented sudden and unprecedented opportunities to serve the evolving needs of merchants, consumers and Dashers. We sped up our hiring to catch up with our growth and started many new businesses in response to feedback from our audiences,” he wrote.

 “Most of our investments are paying off, and while we’ve always been disciplined in how we have managed our business and operational metrics, we were not as rigorous as we should have been in managing our team growth,” Xu admitted. “That’s on me. As a result, operating expenses grew quickly.”

DoorDash is the latest company that has had to make employee cuts this year. It joins the long list including Bed, Bath and Beyond, Meta, Twitter and more. 

According to CNN, so far this year, DoorDash shares are down more than 60%.