CNN
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DoorDash said on Wednesday it would lay off about 1,250 company employees, making it the latest tech company to lay off workers in recent weeks after its team expanded too quickly during the pandemic.
The layoffs represent about 6 percent of DoorDash’s workforce, according to a company spokesperson.
DoorDash CEO Tony Xu Shares Layoff News memorandum It was “the most difficult change to DoorDash that I have had to announce in our nearly 10-year history,” he told employees earlier Wednesday.
“If you’re one of those affected, I’m really sorry, and I’m sorry that some of you woke up to this message instead of reading it at a more normal time,” Xu added.
Like other tech companies, DoorDash has experienced a pandemic boom as more consumers embrace online deliveries and avoid stores and restaurants amid the health crisis. DoorDash “accelerated our hiring to keep up with our growth and started many new businesses in response to feedback from our audience,” Xu said.
While “most of our investments have paid off,” Xu wrote, “we have not been as disciplined as we should have been in managing team growth.” He added: “This is my responsibility. Therefore, operating expenses It’s growing fast.”
Recently, a wave of layoffs has swept across the tech industry as companies respond to rising inflation, recession fears and shifting demands from the pandemic. Meta, Twitter, and Amazon have all announced major layoffs, some of whom have acknowledged Misreading Pandemic Needs.
In his memo, Xu nodded to the changing economic environment. “We are not immune to external challenges either, and growth has slowed relative to our pandemic growth rate,” he wrote.
Shares of DoorDash are down more than 60% so far this year.