DoorDash plans to lay off around 1,250 employees, around 6% of its workforce

On-demand delivery platform DoorDash has decided to cut around 1,250 corporate jobs in an effort to reduce operating expenses, in a statement made by DoorDash CEO Tony Xu.

The lay off which accounts for around 6% of its workforce impacted talent recruiters and sales trainers, as well as workers at Wolt and Bbota, two startups DoorDash recently acquired, per an Insider report.

This comes as the company continue its money-saving efforts to close the gap between its $1.7 billion in revenue and $2 billion in operating costs.

DoorDash and food delivery services like it saw a big boost during the Covid-19 pandemic. The company began pouring its resources into expanding outside of traditional restaurant delivery over the past year by striking delivery partnerships with supermarkets, convenience stores, and retailers. In September, DoorDash hit a milestone when its non-restaurant partnerships exceeded 75,000 stores.

The company conceded that it had expanded too quickly, and taken up a lot of new hires, increasing its operating expenses, but has had to make the cut — because if left unabated — would continue to outgrow its revenue.

DoorDash joins a bevvy of restaurant disruptors and food tech companies that have been forced to lay off workers after growing at a rapid pace during the pandemic.

Hundreds of workers have now lost their jobs at restaurant tech startups like Nextbite, Sunday, ChowNow, Lunchbox, GoPuff, and Reef as diners' buying habits continue to shift amid record inflation.