Same-day delivery service DoorDash recently announced the layoff of 1,250 corporate workers, raising questions as to whether this is a result of a company in trouble, a contracting vertical, an impending recession or elements of two or three of the above.
Tony Xu, DoorDash CEO, on November 30 publicly announced the layoffs in a release posted on the DoorDash corporate website. In it, Mr. Xu said that the company had initially been undersized but scaled dramatically during the pandemic, due to the unprecedented demand for delivery services from locked-down shoppers. He confessed to having failed to manage operational expenditures while scaling the business, increasing hires and launching new initiatives. He also cited tapering growth as the pandemic has waned.
