DoorDash cuts 1,250 jobs as deliveries ebb after pandemic

DoorDash is eliminating more than 1,200 corporate jobs, saying it hired too many people when delivery demand surged during the COVID-19 pandemic.

CEO Tony Xu said in a message to employees Wednesday that DoorDash was undersized before the pandemic and sped up hiring to catch up with its growth. It is cutting approximately 1,250 people.

“Most of our investments are paying off, and while we’ve always been disciplined in how we have managed our business and operational metrics, we were not as rigorous as we should have been in managing our team growth. That’s on me. As a result, operating expenses grew quickly," he said.

Xu said DoorDash will still work on lowering operating costs not related to headcount, but that measures like that weren't going to be enough to close the gap.