DoorDash to Lay Off 1,250 Corporate Employees
Doordash is the latest company to announce layoffs, with 1,250 corporate employees set to lose their jobs. This comes as a result of a number of factors, including tapering growth and overhiring.
DoorDash joins the ranks of other tech companies like Amazon, Meta, Twitter, HP, and Lyft that have announced job cuts in recent months. While it’s unfortunate that these layoffs are necessary, it’s important to remember that they are only a temporary measure as companies work to adjust to changing market conditions.
The update was published by DoorDash CEO Tony Xu on the company blog to all employees. “This is the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history. Today, we are reducing our corporate headcount by approximately 1250 people and saying goodbye to many talented teammates.”
Employees are well compensated in this process of transitioning out of the company. DoorDash is providing severance, outplacement services, immigration support, career transition, and health insurance coverage for a period of time to help support them during this transition.
The layoffs are the latest in a series of cost-cutting efforts put in place by DoorDash following its successful IPO at the end of 2020. DoorDash shares closed up more than 85% in their debut, valuating the company at around $60.2 billion. The food delivery app had priced its shares at $102 Tuesday night, above its range of $90 to $95. When trading began Wednesday morning, DoorDash stock was valued at $182 per share.
This layoff news has been met with mixed reactions as many are sad to see the number of layoffs increase in the tech industry. However, tech companies need to do what they can to remain competitive and ensure their future success.
It’s important to remember that while these layoffs are unfortunate, they do not reflect the future of DoorDash. The company remains optimistic that it will be able to make the necessary changes and come back even stronger in the future.
Doordash’s layoffs are a reminder of just how quickly things can change within tech companies, but also of their ability to adjust and remain competitive. It is yet another example of how, despite the current market conditions, companies must do what they can to ensure their long-term success.
Let us hope that this isn’t the start of a larger trend and that tech companies will be able to adjust and move forward without having to resort to layoffs in the future.
