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'This is the most difficult change': DoorDash to cut about 1,250 corporate jobs after pandemic hiring surge

DoorDash-Job Cuts
Posted at 2:18 PM, Nov 30, 2022
and last updated 2022-11-30 14:39:48-05

DoorDash announced Wednesday that it was cutting around 1,250 jobs because it expanded too quickly to keep up with the demand for deliveries during the COVID-19 pandemic.

In a blog post, CEO Tony Xu explained that before the pandemic, the company was undersized but as the pandemic saw a surge in deliveries, the company hired rapidly, which led to operating expenses growing too quickly.

"Our business has been more resilient than other ecommerce companies, but we too are not immune to the external challenges and growth has tapered vs our pandemic growth rates," Xu wrote. "While our business continues to grow fast, given how quickly we hired, our operating expenses – if left unabated – would continue to outgrow our revenue."

Xu added that he didn't come to this decision lightly, but in order to lower operating costs, the company had to cuts jobs.

The CEO said the employees impacted would receive 17 weeks of compensation and their February 2023 stock vest. They would also receive their health benefits through March 31, 2023.