DoorDash lays off 1,250 employees

Delivery service DoorDash is laying disconnected 1,250 firm workers arsenic portion of a continued cost-cutting effort, driven by tapering maturation and overhiring, CEO Tony Xu said successful a connection to employees connected Wednesday.

Shares were up astir 3% successful premarket trading connected the news.

DoorDash joins the ranks of Amazon, Meta, Twitter, HP, and Lyft successful imposing occupation cuts. Tech manufacture hiring ballooned during the pandemic and has seen a harsh comedown successful caller months arsenic involvement rates mute user request and capitalist confidence.

DoorDash announced a slowdown successful hiring earlier this year. It had 8,600 firm employees arsenic of Dec. 31, 2021.

DoorDash went nationalist astatine the extremity of 2020 successful a wildly palmy IPO that saw shares soar 80% implicit archetypal pricing. In November 2021, it deed a highest valuation of $81.1 billion, contempt ne'er turning a profit.

DoorDash volition connection 17 weeks of severance to affected employees. Healthcare volition proceed done March 2023. For overseas oregon visa-sponsored employees, the termination day volition beryllium Mar. 1, a determination that Xu told employees would springiness them "as overmuch clip imaginable to find a caller job." DoorDash volition acceptable a termination day of March 2023 for H1-B visa holders, allowing overseas workers arsenic overmuch clip arsenic imaginable to find a caller opportunity.

DoorDash shares are down implicit 60% year-to-date.