Food delivery service DoorDash is laying off 1,250 corporate employees as part of a continuing cost-cutting effort driven by slowing growth and overhiring, according to CEO Tony Xu in a message to employees on Wednesday.
DoorDash joins Amazon, Meta, Twitter, HP, and Lyft in implementing layoffs. Hiring in the technology industry skyrocketed during the Covid pandemic and has since plummeted as interest rates tamp down consumer demand and investor confidence.
As of December 31, 2021, it had 8,600 corporate employees.
DoorDash went public at the end of 2020, in a wildly successful IPO that saw shares skyrocket 80% above their initial pricing. Despite never turning a profit, it reached a peak valuation of $81.1 billion in November 2021.
DoorDash will provide affected employees with 17 weeks of severance pay. Health care will be provided until March 2023. The termination date for overseas or visa-sponsored employees will be March 1, a decision that Xu stated would give them “as much time as possible to find a new job.”