DoorDash lays off 1,250 workers

Supply service DoorDash is shedding 1,250 company staff as a part of a continued cost-cutting effort, pushed by tapering development and overhiring, CEO Tony Xu stated in a message to workers on Wednesday.

Shares had been up about 3% in premarket buying and selling on the information.

DoorDash joins the ranks of Amazon, Meta, Twitter, HP, and Lyft in imposing job cuts. Tech business hiring ballooned throughout the pandemic and has seen a harsh comedown in latest months as rates of interest mute shopper demand and investor confidence.

DoorDash introduced a slowdown in hiring earlier this yr. It had 8,600 company workers as of Dec. 31, 2021.

DoorDash went public on the finish of 2020 in a wildly profitable IPO that noticed shares soar 80% over preliminary pricing. In November 2021, it hit a peak valuation of $81.1 billion, regardless of by no means turning a revenue.

DoorDash will provide 17 weeks of severance to affected workers. Healthcare will proceed by March 2023. For abroad or visa-sponsored workers, the termination date can be Mar. 1, a call that Xu informed workers would give them “as a lot time potential to discover a new job.” DoorDash will set a termination date of March 2023 for H1-B visa holders, permitting abroad staff as a lot time as potential to discover a new alternative.

DoorDash shares are down over 60% year-to-date.