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DoorDash Plans to Cut 1,250 Jobs to Reduce Costs

Industry: Catering Services
Current: Company Performance

DoorDash said that it will cut about 6% of its staff, which includes domestic and international employees
As reported by the company, the total revenue and net loss of DoorDash increased significantly in the third quarter that ended in September 2022
Unlike other companies that reported a decline in demand due to rising inflation, DoorDash's order numbers remained constant

DoorDash Inc. To Let Go of 1,250 Employees

DoorDash Inc. said that it will lay off 1,250 employees to cut costs. The cuts will affect around 6% of the company's personnel, a mix of employees headquartered in the US and abroad.

The company hopes to reduce operating costs by reducing headcount or layoffs. As reported by the company, the total revenue and net loss of DoorDash increased significantly in the third quarter that ended in September 2022 due to stock-based compensation and the incorporation of Wolt, the Finnish food delivery firm it acquired in 2021.

Although San Francisco-based DoorDash Inc. is the latest tech firm to lay off staff , unlike other companies that reported a decline in demand due to rising inflation, DoorDash's order numbers remained constant. Following news of the layoffs, shares of DoorDash rose by as much as 2.5% in premarket trade.

The COVID-19 pandemic increased consumers' appetite for takeout when indoor eating was prohibited due to lockdowns. The company made significant investments to continue growth by expanding into industries other than restaurants, such as convenience store products, groceries, and alcohol. DoorDash spent $8 billion in 2021 to purchase Wolt to increase its global footprint.

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