DoorDash, the online food ordering company, announced cutting about 1,250 jobs, or 6 per cent of its total workforce to cope with a slowdown in demand.
To cater to increased demand during the pandemic, the company went on a hiring spree. However, the sudden drop in demand from inflation-wary customers has left the company grappling with ballooning costs.
"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," Chief Executive Tony Xu said in a memo to employees that was posted on the company's website.