DoorDash is laying off around 1,250 corporate employees
that DoorDash sped up hiring during the COVID-19 pandemic to catch up with its growth, since the company was actually undersized as of early 2020. Most of DoorDash's investments are said to be paying off. However, Xu noted that"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.
Xu added that DoorDash has"been more resilient than other ecommerce companies." Third-party data suggests that the company increased its share of the food delivery market to 56 percent of sales as of September. However, DoorDash is still vulnerable to external factors, such as rising interest rates and the threat of a recession.
The company's growth has slowed and Xu said if DoorDash didn't cut costs, its operating expenses would outpace its revenue. The layoffs will account for around six percent of DoorDash's workforce, according to
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