DoorDash, a leading online food delivery platform, said it would be terminating jobs of around 1,250 employees in order to cut cost.
DoorDash reported revenue of $1.7 billion with gross profit of $714 million during the third quarter of 2022. DoorDash said it generated well over $70 billion in sales for merchants on its platform and well over $25 billion in earnings for Dashers during Q1 2020 through Q3 2022.
“Anyone impacted will receive 17 weeks of severance pay, as well as your February 2023 stock vest,” said DoorDash CEO Tony Xu.
“We have and will continue to reduce our non-headcount operating expenses, but that alone wouldn’t close the gap. This hard reality ultimately led me to make this painful decision to reduce our team size,” Tony Xu said.
Employees will continue to receive healthcare benefits through March 31, 2023.
For employees in the US on a visa, DoorDash will set the termination date for March 1, 2023, so they have enough time to find a new job.
DoorDash will create an opt-in directory for companies to reach employees and offer recruiting support to help find next job.
