American takeout platform DoorDash announced 6% layoffs, involving about 1250 people

DoorDash, a US food delivery platform, announced today that it will cut about 1250 jobs in order to cut costs and cope with the global economic downturn, Beijing time reported.

Today, DoorDash CEO Xu Xun (Tony Xu) said in a letter to employees: "although our business continues to grow rapidly, but given the speed of our recruitment, if we do not cut operating expenses, the increase will exceed revenue."

To this end, DoorDash hopes to cut operating costs through layoffs. In the third quarter of this year, DoorDash's operating expenses exceeded $2 billion, mainly due to stock-based compensation and the integration of Wolt, a Finnish takeout company acquired last year.

"We will continue to cut 'non-employee' operating expenses, but this alone is not enough to solve the problem," Xu said. this cruel reality finally led me to make this painful decision to reduce the size of the team. "

The job cuts will affect about 6 per cent of DoorDash's staff, including US and non-US employees, according to people familiar with the matter. Data show that as of December 31, 2021, DoorDash had more than 8600 employees worldwide.

DoorDash shares rose 2.5 per cent in pre-market trading on the news.

Prior to this, a number of US technology companies have announced layoffs, including Snap, Meta, Twitter and Hewlett-Packard. It has also been reported recently that Google may also join the list of layoffs.