DoorDash lays off 1,250 employees

Tony Xu, co-founder and chief executive officer of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, U.S., on Tuesday, Oct. 22, 2019.

The CEO of DoorDash said in a message to employees on Wednesday that 1,250 corporate workers will be laid off due to a continued cost-cutting effort.

The shares were up.

Job cuts have been imposed on DoorDash by other companies. The tech industry has seen a downturn in hiring in recent months as interest rates have fallen.

Earlier this year, DoorDash slowed down hiring. There were 8, 600 corporate employees at the end of the year.

After going public at the end of 2020, shares of DoorDash soared 80% over initial pricing. Even though it never turned a profit, it hit a peak valuation of $81 billion in November.

DoorDash will give 17 weeks of severance to employees who lose their jobs. The healthcare will continue. The decision was made that employees would be given as much time as possible to find a new job. H1-B visa holders will be able to find a new job as soon as March 23, 2023, thanks to DoorDash.

The shares of DoorDash are down a lot.