DoorDash Expects $85M In Charges Related To Job Cuts

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 ReadWhy 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.
  • Photo Via Company

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