DoorDash’s CEO has apologized to staff after the company revealed it will slash around 1,250 corporate roles after a pandemic hiring spree.
The move makes the food-delivery company the latest firm to lay off workers in recent weeks.
CEO Tony Xu called it “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.
He said: “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.”
DoorDash witnessed a pandemic surge as more people preferred online deliveries and avoided stores and restaurants during the health crisis.
Mr. Xu said that DoorDash “sped up our hiring to catch up with our growth and started many new businesses in response to feedback from our audiences.”
He added that while “most of our investments are paying off, 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.”
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The reductions represent around six percent of DoorDash’s workforce.
A spate of layoffs has lately swept across the tech sector as businesses respond to growing inflation, recession worries, and a shift in market demand.
Meta, Twitter, and Amazon have all confirmed major job cuts, with some of these companies’ executives admitting they miscalculated pandemic demand.
Xu alluded to the changing economic conditions in his memo sent to employees.
He said: “We too are not immune to the external challenges and growth has tapered vs our pandemic growth rates.”