DoorDash lays off 1,250 employees to cut costs
DoorDash stock price will hit $256 in 2022: Market expert
Evercore ISI Senior Managing Director Mark Mahaney shares his DoorDash and Amazon stock price targets for 2022.
DoorDash announced Wednesday that it is laying off 1,250 employees in an effort to reduce operating expenses amid the uncertain economic environment.
CEO Tony Xu apologized to affected employees in a blog post, saying that this is the "most difficult change to DoorDash" that he has had to announce in its nearly 10-year history.
Xu admitted that the company has grown to the point that its "operating expenses – if left unabated – would continue to outgrow our revenue."
"Our business has been more resilient than other ecommerce companies, but we too are not immune to the external challenges and growth has tapered vs our pandemic growth rates," he said.
Xu said the company plans to continue to reduce its non-headcount operating expenses, "but that alone wouldn’t close the gap."
This is a developing story. Check back for updates.
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