DoorDash lays off 1,250 workers

Supply service DoorDash is shedding 1,250 company employees as a part of a continued cost-cutting effort, pushed by tapering development and overhiring, CEO Tony Xu mentioned in a message to workers on Wednesday.

Shares have been up about 3% in premarket buying and selling on the information.

DoorDash joins the ranks of Amazon, Meta, Twitter, HP, and Lyft in imposing job cuts. Tech business hiring ballooned through the pandemic and has seen a harsh comedown in current months as rates of interest mute shopper demand and investor confidence.

DoorDash introduced a slowdown in hiring earlier this 12 months. It had 8,600 company workers as of Dec. 31, 2021.

DoorDash went public on the finish of 2020 in a wildly profitable IPO that noticed shares soar 80% over preliminary pricing. In November 2021, it hit a peak valuation of $81.1 billion, regardless of by no means turning a revenue.

DoorDash will supply 17 weeks of severance to affected workers. Healthcare will proceed via March 2023. For abroad or visa-sponsored workers, the termination date will likely be Mar. 1, a call that Xu instructed workers would give them “as a lot time doable to discover a new job.” DoorDash will set a termination date of March 2023 for H1-B visa holders, permitting abroad employees as a lot time as doable to discover a new alternative.

DoorDash shares are down over 60% year-to-date.