DoorDash, an online food delivery service, reports 1,250 staff layoffs
- ByStartupStory | December 1, 2022
On Wednesday, the online meal delivery service DoorDash announced it was firing about 1,250 workers. It also stated that those affected had gotten an email notification to both their personal and DoorDash email addresses on their personal devices.
“Anyone impacted will receive 17 weeks of severance pay as well as their February 2023 stock vest,” said DoorDash CEO Tony Xu.
“I did not take this decision lightly. We have and will continue to reduce our non-headcount operating expenses, but that alone wouldn’t close the gap. This hard reality ultimately led me to make this painful decision to reduce our team size,” said Xu.
Additionally, healthcare benefits will be provided to employees through March 31, 2023. DoorDash will set the end date for workers in the US on a visa to March 1, 2023, giving them adequate time to look for work again.
“We will create an opt-in directory for companies to reach you and offer recruiting support to help you find your next job,” said Xu.
“If you are among those impacted, I am truly sorry, and I apologize for having some of you wake up to this news as opposed to reading it during more normal hours,” he added. DoorDash was essentially a small business before COVID-19. The epidemic provided unexpected and unheard-of chances to meet the changing needs of businesses, customers, and “Dashers.”
“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. That’s on me. As a result, operating expenses grew quickly,” said the CEO.
Follow Startup Story
Related Posts
