DoorDash announces layoffs affecting 1,250 workers

DoorDash is laying off around 1,250 workers. The update, posted by DoorDash CEO Tony Xu, explains that the company grew too quickly during the covid pandemic, leading to an increase in operating expenses that could soon “outgrow” the company’s revenue.

“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,” Xu writes. “That’s on me. As a result, operating expenses grew quickly ... This hard reality ultimately led me to make this painful decision to reduce our team size.”

Xu adds that although DoorDash remained resilient during and after the covid pandemic, the company is not “immune” to the current economic challenges....

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