DoorDash Pecat 1,250 Employees, It Turns Out That This Is The Reason!

DoorDash fired 1,250 employees (photo: DoorDash)

JAKARTA - Nearly 10 years in the long history of its services, DoorDash, an online food ordering and delivery platform, announced a reduction of 1,250 employees on Wednesday, November 30.

"This is the most difficult change to DoorDash that I have to announce in almost 10 years of our history. Today, we are reducing the number of our company's employees by about 1,250 people and saying goodbye to many talented teammates," said DoorDash CEO Tony Xu in his official announcement.

Xu also revealed the reason why this decision had to be taken, in the midst of the DoorDash business which remains strong and continues to grow.

"Before COVID-19, DoorDash was actually small as a company. The pandemic presents sudden and unprecedented opportunities to serve the growing needs of traders, consumers, and Dasher (doorDash employees)," explained Xu.

With the development of services, it has made the company accelerate employee recruitment to pursue service growth and start many new businesses.

Xu realized that although some investments paid off. Unfortunately, because the company is not very strict in managing its operational business, this then causes operational costs to also grow rapidly to exceed the company's revenue.

"Now, let's admit the macro situation. Our business is more resilient than any other e-commerce company, but we are also not immune to external challenges and growth has tapered compared to our pandemic growth rate," Xu concluded.

So, despite trying to drain non-employment operational costs, Xu said that it was not enough to cover the company's losses, so he ended up getting to the decision today.

In the future, Xu said he would continue to make DoorDash a tough and optimistic company with his future.

"Although today's news hurts, I remain optimistic about our future and believe in the importance of the roles we can play in the world," he said.