Tony Xu, co-founder and chief government officer of DoorDash Inc., smiles throughout the Wall Street Journal Tech Live convention in Laguna Beach, California, U.S., on Tuesday, Oct. 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
Delivery service DoorDash is shedding 1,250 company employees as a part of a continued cost-cutting effort, pushed by tapering development and overhiring, CEO Tony Xu mentioned in a message to workers on Wednesday.
The firm’s shares closed up over 9.2%.
DoorDash joins the ranks of Amazon, Meta, Twitter, HP and Lyft in imposing job cuts. Tech business hiring ballooned throughout the Covid pandemic and has seen a harsh comedown in current months as rates of interest mute client demand and investor confidence.
It had 8,600 company workers as of Dec. 31, 2021.
DoorDash went public on the finish of 2020 in a wildly profitable IPO that noticed shares soar 80% over preliminary pricing. In November 2021, it hit a peak valuation of $81.1 billion, regardless of by no means turning a revenue.
DoorDash will supply 17 weeks of severance to affected workers. Health care will proceed by means of March 2023. For abroad or visa-sponsored workers, the termination date shall be March 1, a choice that Xu instructed workers would give them “as much time possible to find a new job.”
DoorDash shares are down just below 60% yr thus far.
Correction: DoorDash didn’t beforehand announce a hiring slowdown.