DoorDash Slashes 6% Of Its Workforce As Competition Weighs

DoorDash Slashes 6% Of Its Workforce As Competition Weighs
  • DoorDash, Inc DASH downsized employee strength by 1,250 to rein in expenses, according to a company memo from CEO Tony Xu.
  • "While our business continues to grow fast, given how quickly we hired, our operating expenses - if left unabated - would continue to outgrow our revenue," Xu wrote as per a Bloomberg report.
  • The cuts will affect about 6% of the company's workforce, a mix of U.S. and non-U.S.-based staff.
  • Also Read: DoorDash Implements AI Robots For Smarter, Safer Workplace
  • DoorDash's operating expenses topped $2 billion in the third quarter, mainly due to stock-based compensation and the absorption of Wolt, the Finnish food-delivery company it acquired last year.
  • DoorDash is the latest technology firm to cut staff amid an uncertain economic outlook but in contrast to other companies seeing a slowdown in consumer demand due to rising inflation.
  • DoorDash's order volumes grew 27% in the third quarter.
  • The pandemic triggered consumers' affinity for takeout on the pandemic outbreak.
  • Competition in the sector has only intensified. The company has spent heavily to sustain growth by expanding its footprint in non-restaurant categories like convenience store items, groceries, and alcohol
  • Price Action: DASH shares traded higher by 2.74% at $54.80 in the premarket on the last check Wednesday.

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