Online food delivery platform DoorDash lays off 1,250 employees
Online food delivery company DoorDash lays-off employees over emails, says this is a painful decision
Parul December 1, 2022
MORE IN News
RBI issues draft guidelines on payment aggregators
IMF increases India’s growth projection to 6.8% for 2024
Apple aims at assembling iPhone camera module in India to cut dependence on China
Uttar Pradesh now has the most GI-tagged items in India
Indian mutual fund industry sees surge in folios, 17.79 lakh crore in last 5 years: ICRA
Online food delivery platform DoorDash on Wednesday said it is laying off around 1,250 employees.
Those impacted received an email notification on their personal devices to both DoorDash and personal email address.
“Anyone impacted will receive 17 weeks severance pay, as well as your February 2023 stock vest,” said DoorDash CEO Tony Xu.
“I did not take this decision lightly. We have and will continue to reduce our non-headcount operating expenses, but that alone wouldn’t close the gap. This hard reality ultimately led me to make this painful decision to reduce our team size,” said Xu.
Also Read: Telcos should also pay OTT platforms, BIF urges govt
Employees will also continue to receive healthcare benefits through March 31, 2023.
For employees in the US on a visa, DoorDash will set the termination date for March 1, 2023, so they have enough time to find a new job.
“We will create an opt-in directory for companies to reach you and offer recruiting support to help you find your next job,” said Xu.
“If you are among those impacted, I am truly sorry and I apologise to have some of you wake up to this news as opposed to reading it during more normal hours,” he added.
Also Read: Women—Money wise or otherwise?
Prior to Covid-19, DoorDash was actually undersized as a company.
The pandemic presented sudden and unprecedented opportunities to serve the evolving needs of merchants, consumers and “Dashers”.
“Most of our investments are paying off, and while we’ve always been disciplined in how we have managed our business and operational metrics, we were not as rigorous as we should have been in managing our team growth. That’s on me. As a result, operating expenses grew quickly,” said the CEO.