DoorDash Cuts Staff by 1,250 To Rein in Costs

DoorDash is reducing its corporate staff by about 1,250, or 6% of the company, as the food-delivery platform works to rein in costs after a pandemic-fueled growth spurt, according to an internal memo from Chief Executive Tony Xu. WSJ: DoorDash is the latest among a swath of technology companies to cut staff to pare back costs as rising interest rates and economic uncertainty spur investors to focus more on profitability. DoorDash, like many companies, is also navigating shifting consumer habits as trends normalize from pandemic disruptions. The company's food-delivery competitors, such as Uber face their slowest growth in years. "We were not as rigorous as we should have been in managing our team growth," Mr. Xu said in the memo, which was viewed by The Wall Street Journal. "That's on me. As a result, operating expenses grew quickly." Growth has tapered from pandemic highs, Mr. Xu said, and operating costs would continue to outpace sales growth if left unaddressed. Since its 2020 initial public offering, DoorDash has struggled to turn a profit, though it did post a profitable quarter at the start of the pandemic. Earlier in November, DoorDash posted a wider-than-expected loss of $296 million for the third quarter as costs surged 46% to over $2 billion.

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