Big companies are laying off employees as a safety measure to deal with the cost-cutting. Even the tech giants are also going to lay off employees. Recently we heard that Alphabet urged managers to find out the non-performing employees and give them pink slips.
Now the American Online food ordering company DoorDash joined the list of companies that are laying off employees. The company said that around 1,250 employees would be removed and they were sent emails saying the same.
DoorDash Chief Executive Officer Tony Xu addressed the employees and said that he is forced to take the tough decision to cut operating costs. Saying that the team had grown exponentially during the Pandemic as the orders increased massively the CEO said to reduce the size of the time employees are being removed.
"Most of our investments are paying off, and while we've always been disciplined in how we have managed our business and operational metrics, 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," CEO Tony Xu said on the tough decision.
Though Covid hit the world very hard, the platforms like online food delivery firms saw a golden period as almost every company saw massive profits. As they cannot step out to get food from the outlets they used the platforms making them enjoy a good profit.
To match the demand the companies hired a massive workforce. The employees received good income during the period. Now companies are slowly reducing the workforce. The San Francisco company decided to lay off the employees to bring down the operating expenses. However, the employees who will be sacked will be given a compensation of 17 weeks and they will get health benefits till the 31st of March next year.
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