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DoorDash to slash 1250 corporate roles

US food delivery giant DoorDash has announced it is letting go of 1250 staff in corporate positions.

Company CEO Tony Xu wrote an open letter to staff which called the move “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.”

He went on to say: “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.

“I know that for many of you, today’s news will come as a shock, especially because our business remains strong and continues to grow,” he added.

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Xu cited the growth of the business during the pandemic and the subsequent errors made in “managing” the DoorDash team growth.

“That’s on me. As a result, operating expenses grew quickly,” he said.

Global macro-economic problems were also given as a reason for the job cuts at the grocery delivery firm. With Xu pointing out that while DoorDash has been more resilient than some other ecommerce firms, it’s not immune.

“We too are not immune to the external challenges and growth has tapered vs our pandemic growth rates. While our business continues to grow fast, given how quickly we hired, our operating expenses – if left unabated – would continue to outgrow our revenue.”

All impacted staff will receive 17 weeks of severance pay, as well as their February 2023 stock vest.

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