DoorDash Expects $85M In Charges Related To Job Cuts

DoorDash Inc DASH expects to incur approximately $85 million in restructuring charges in connection with its jobs cut plan.
In a Securities and Exchange Commission filing, the company disclosed that the charges consist of $68 million in cash expenditures for separation-related payments, benefits, and related taxes, and approximately $17 million in stock-based compensation related to equity compensation for employees who were terminated.
The company is eliminating about 1,250 positions, or 7% of its current workforce, to wade through the economic uncertainty.
The company expects that most cash payments and expenses related to reductions in personnel will be incurred by the end of the first quarter of 2023.
It also warned of the possibility of cost escalation due to unanticipated events that may occur in connection with implementing the plan.
DoorDash believes implementation of the plan will be substantially complete by the end of the first quarter of 2023.
Also Read: Why This DoorDash Analyst Is Turning Bullish On Q3 Update
Price Action: DASH shares are trading higher by 0.94% at $58.80 in premarket on the last check Thursday.
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