DoorDash lays off 1,250 employees as US tech layoffs top 140,000
Food delivery service DoorDash has laid off 1,250 corporate workers as part of the company’s effort to stay afloat during this turbulent economy. The layoff represents about 15% of the company’s total workforce. DoorDash had 8,600 corporate employees as of Dec. 31, 2021.
In a message to employees on Wednesday, CEO Tony Xu said the decision is part of a continued cost-cutting effort, driven by tapering growth and overhiring. The news comes just a few months after the company announced a slowdown in hiring.
DoorDash said it will offer 17 weeks of severance to all the affected employees. The company will also continue to provide health care for them continue through March 2023. “For overseas or visa-sponsored employees, the termination date will be March 1, a decision that Xu told employees would give them “as much time possible to find a new job,” the company said.
DoorDash becomes the latest in a series of tech companies that have either laid off employees or planning to freeze hiring. Two weeks ago, retail giant Amazon announced plans to lay off 10,000 employees, the largest job cut in the history of the company.
Tech layoffs are spreading across the globe and no company looks completely immune from the ongoing global economic downturn. Tech companies, large and small, have laid off more than 139,565 employees so far this year, according to data from Layoffs.fyi, a site that reports the total number of layoffs using data compiled from public reports.
DoorDash was first launched in Palo Alto and, as of May 2019, the delivery startup expanded to more than 4,000 cities and offers a selection of 340,000 stores across the U.S. and Canada. The company is currently worth more than $16 billion and is the largest third-party delivery service in the USA, surpassing Grubhub.
On November 6, 2015, In-N-Out Burger filed a lawsuit against DoorDash claiming trademark infringement and unfair competition. Two months later the lawsuit was dismissed. DoorDash no longer delivers food from In-N-Out Burger.
DoorDash’s top competitors include Postmates, HelloFresh, GrubHub, Deliveroo, iFood, and Tapingo. DoorDash is a technology company that provides an on-demand delivery service connecting customers with local businesses.