DoorDash Inc. is cutting about 1,250 jobs to rein in expenses, acknowledging that a rapid expansion during the pandemic boom has led to mounting losses.
“While our business continues to grow fast, given how quickly we hired, our operating expenses – if left unabated – would continue to outgrow our revenue,” Chief Executive Officer Tony Xu wrote in a letter to staff on Wednesday.
The cuts will affect about 6% of the company’s workforce, a mix of US and non-US based staff, according to people familiar with the matter asking not to be identified as the announcement was not yet public. By scaling back headcount, DoorDash aims to curb operating expenses, which topped $2 billion in the third quarter, largely due to stock-based compensation and the absorption of Wolt, the Finnish food-delivery company it acquired last year.
