Tech layoffs continue as DoorDash drops over a thousand employees
DoorDash announced Wednesday it has laid off around 1,250 employees as a part of a cost-cutting campaign to offset overhiring during the pandemic.
Why it matters: Layoffs and hiring freezes have become commonplace in the tech industry this year, and it's expected to continue throughout the winter as companies warn of the troubling times ahead, per Axios.
Details: DoorDash CEO Tony Xu said in a statement Wednesday the company was "not as rigorous as we should have been in managing our team growth" during the COVID-19 pandemic, leading to these recent layoffs.
- "If you are among those impacted, I am truly sorry and I apologize to have some of you wake up to this news as opposed to reading it during more normal hours," Xu said.
- Employees will receive 17 weeks of severance and 2023 stock vesting as a part of the severance package, the company said.
- Laid-off employees will receive health care benefits through the end of March, DoorDash said.
- The company's shares jumped up 5% after the news, CNBC reports.
The big picture: DoorDash joins other tech giants like Amazon, Meta and Twitter in announcing job cuts as the tech industry copes with the fallout from the hiring surge during the early days of the pandemic.
- Consumer demand and investor confidence have thrown cold water on these companies, per CNBC.
- Now, employees with these businesses — who are used to high salaries, massive benefits and lots of opportunities — have to deal with the tough times ahead.
More from Axios:
Tech layoffs are soaring this month