Brittany Gates

Reporting video games and tech news from an entrepreneur angle

DoorDash Layoff Affects 1250 Employees

doordash layoff
CEO Tony Xu tells his employees the job cuts are part of a cost-cutting measure to remedy slowly growth and overhiring.

More bad news for those working in the Technology Industry: DoorDash layoff affects 1250 employees. The company joins the multitude of other companies having layoffs this year (like Meta, Twitter, Lyft to name a few).

The Details About The DoorDash Layoff

The layoff is affecting the corporate employees. And according to the company’s CEO, Tony Xu, this is part of a cost-cutting measure to help remedy the declining growth and overhiring. The DoorDash layoff is the result of the company hiring too many individuals during the Pandemic when the app saw increased usage. In addition, the app is seeing less customer demand that before. Part of the reason for the decreased usage is due to inflation. With food and gas costs rising many people don’t have the funds to order food from DoorDash, especially when they have to pay for the additional fees imposed by the platform. Another reason for customer using the app less because they can go out to restaurants now. And they are doing just that instead of ordering food to their home.

What happens to the employees losing their job? They get 17 weeks of severance pay and company health insurance through March 2023. Finally, the employees working at the company through the visa program will have a March 1, 2023 termination date. That way they will have more time to find another job to stay in the country. Visa holders only have 60 days to find another job that will sponsor them. If they can’t, then those individuals have to leave the country.

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