DoorDash cuts 1,250 jobs in a cost-saving drive

DoorDash has decided to cut jobs as a result of the sudden drop in demand and the skyrocketing costs. During the pandemic, the company hired a lot of people to help people who were stuck at home.

The online meal delivery service DoorDash announced it will be laying off roughly 1,250 employees, or 6% of its whole workforce, in order to deal with a downturn in demand.

The business hired a lot of people to handle the surge in demand brought on by the pandemic. However, the company is now dealing with skyrocketing prices as a result of the unexpected decline in demand from inflation-conscious customers.

"We did not manage the growth of our workforce with the discipline that we ought to have. That's my fault. As a result, operating costs increased rapidly, "Tony Xu, the company's chief executive, stated in a note to staff that was published on the website of the business.

DoorDash joins a series of multinational American companies that have fired thousands of workers recently as they prepare for a future economic slump, including Amazon.com Inc.

While Xu from DoorDash underlined that the company has been more resilient than other e-commerce businesses, he claimed doing so "wouldn't close the gap."