DoorDash to lay off 1,250 workers to reign in costs
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New Delhi: DoorDash, the American online food delivery platform, announced Wednesday that it was laying off some 1,250 employees. Those terminated received emails on both DoorDash and personal email addresses.
DoorDash CEO Tony Xu said, "Anyone impacted will receive 17 weeks severance pay, as well as your February 2023 stock vest,"
Xu said, "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."
However, the platform said that employees will also continue to receive healthcare benefits through March 31, 2023.
For employees in the US on a visa, DoorDash will set the termination date for March 1, 2023, so they have enough time to find a new job.
"We will create an opt-in directory for companies to reach you and offer recruiting support to help you find your next job," Xu said. "If you are among those impacted, I am truly sorry, and I apologize to have some of you wake up to this news as opposed to reading it during more normal hours."
Before the outbreak of Covid-19, DoorDash was undersized as a company. The pandemic presented sudden and unprecedented opportunities to serve the evolving needs of merchants, consumers and "Dashers", IANS writes.
"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," the CEO said.