DoorDash is the latest company to reduce its headcount in the face of economic headwinds, cuttings its workforce by 1,250.
Countless companies in a range of industries miscalculated the long-term impact of the pandemic. As a result, many companies increased their headcount to levels that were unsustainable once things began to return to normal.
DoorDash CEO Tony Xu indicated his company had done the same thing in a memo to employees:
Most of our investments are paying off, and 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.
Unfortunately, the end result is that some 1,250 employees will lose their job:
This is the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history. Today, we are reducing our corporate headcount by approximately 1250 people and saying goodbye to many talented teammates. If you are among those impacted, I am truly sorry and I apologize to have some of you wake up to this news as opposed to reading it during more normal hours.