“As we speak, we’re decreasing our company headcount by roughly 1250 individuals and saying goodbye to many proficient teammates. If you’re amongst these impacted, I’m actually sorry and I apologize to have a few of you get up to this information versus studying it throughout extra regular hours,” mentioned Tony Xu, CEO DoorDash.
The corporate additionally talked about that it’ll supply 17 weeks of severance to the impacted staff and the well being care help will proceed until March 2023. The corporate additional added that the termination date can be March 1 for abroad staff or visa-sponsored staff.
Learn the whole message right here
That is essentially the most tough change to DoorDash that I’ve needed to announce in our nearly 10-year historical past. As we speak, we’re decreasing our company headcount by roughly 1250 individuals and saying goodbye to many proficient teammates. If you’re amongst these impacted, I’m actually sorry and I apologize to have a few of you get up to this information versus studying it throughout extra regular hours.
I do know that for a lot of of you, right now’s information will come as a shock, particularly as a result of our enterprise stays robust and continues to develop. That’s the reason I believe it is crucial that I clarify how I arrived at this resolution, what we’re doing for these departing DoorDash, and why I’m optimistic about our future.
How We Obtained Right here
As with all issues, I need to begin and focus on the elements in our management that led to right now’s announcement and take accountability for this resolution. Previous to COVID-19, DoorDash was truly undersized as an organization. The pandemic offered sudden and unprecedented alternatives to serve the evolving wants of retailers, shoppers and Dashers. We sped up our hiring to meet up with our progress and began many new companies in response to suggestions from our audiences.
Most of our investments are paying off, and whereas we’ve all the time been disciplined in how we now have managed our enterprise and operational metrics, we weren’t as rigorous as we should always have been in managing our crew progress. That’s on me. Consequently, working bills grew shortly.
Now, let’s acknowledge the macro state of affairs. Our enterprise has been extra resilient than different ecommerce corporations, however we too are usually not resistant to the exterior challenges and progress has tapered vs our pandemic progress charges. Whereas our enterprise continues to develop quick, given how shortly we employed, our working bills – if left unabated – would proceed to outgrow our income.
I didn’t take this resolution flippantly. Now we have and can proceed to cut back our non-headcount working bills,however that alone wouldn’t shut the hole. This tough actuality in the end led me to make this painful resolution to cut back our crew measurement.
Help for Departing Teammates
Working at DoorDash means chasing excellence each day. These of you who’re departing selected that pursuit, and I’m grateful to every of you in serving to DoorDash get to the place it’s right now.
For these impacted, you may be receiving an electronic mail notification within the subsequent quarter-hour in your private gadgets to each your DoorDash and private electronic mail handle.
Right here’s how we’ll help you throughout this tough transition interval:
Pay + RSU vest: Anybody impacted will obtain 17 weeks (13 weeks + 1 four-week lump sum severance pay) of compensation, in addition to your February 2023 inventory vest.
Healthcare: All well being advantages will proceed by March 31, 2023. Thereafter, staff will be capable of choose in and pay for COBRA protection for as much as 18 months.
Immigration help: We are going to set the termination date for March 1, 2023, giving these with visa functions (and a want to remain within the US) as a lot time as attainable to discover a new job.
Profession transition: We are going to create an opt-in listing for corporations to succeed in you and supply recruiting help that can assist you discover your subsequent job. You’re among the many hardest working, most dedicated, operationally wonderful individuals corporations may discover, and we’re assured you’ll add worth to any new group you be part of.
A few of these particulars will differ for our teammates outdoors the US, and each impacted worker will obtain an electronic mail with data particular to them. For the Wolt crew, you’ll be listening to quickly from Miki.
Whereas there is no such thing as a nice solution to handle this course of, we attempt to deal with every of you with respect and integrity. Every of you who’s impacted may have the chance to talk to a pacesetter this week. We’ll be sending data on getting these conversations scheduled along with outlining different particulars together with a course of so that you can say goodbye to teammates and entry essential programs to acquire details about bills and payroll.
The Path Ahead
Whereas I need to focus right now’s consideration on our proficient teammates who’re departing, I did need to say a couple of phrases to the crew that’s staying and carrying the baton. Whereas right now’s information is painful, I proceed to be very optimistic about our future and satisfied of the significance of the function we will play on the planet.
DoorDash has all the time been a resilient firm. For the primary half of our historical past, we had been continually cash-starved and under-resourced in comparison with our friends. As we speak, we’re a market chief that’s nonetheless in its early innings of turning into the defining native commerce firm globally. We’ve grown from one enterprise (our US Eating places Market) in a single nation, into 5 companies serving 27 international locations, throughout retailers in each class of native retail on each our Market and Platform. Our enterprise – similar to the native economies we serve – has been resilient and our execution has been dynamic within the face of a worldwide pandemic, persisting inflation, an power disaster, recessionary demand, and a warfare. The runway forward is very large and we’ve constructed super momentum. If we will obtain our mission to develop and empower native economies around the globe, not solely will we prosper as a enterprise however I additionally imagine a lot good can be achieved as we create a world the place tens of millions of retailers can thrive, bringing out the most effective of our neighborhoods’ ethos and personalities.
Simply as our mission hasn’t modified, neither has our technique. Our enterprise fundamentals stay robust. However as I’ve mentioned earlier than, what acquired us right here received’t essentially deliver us to the following stage and we now have to tailor a few of our techniques. Trying forward, we’re assured that we now have reset the dimensions and form of our group to match our strategic priorities. We should preserve this stage of self-discipline shifting ahead and act with the starvation, effectivity and creativity of the youthful startup we as soon as had been whereas main with the accountability of the market chief we’ve develop into. One final result from this method is that we’ll proceed to rent and add again recruiting capability in a extra focused and rigorous means. We are going to focus on how we’ll do that collectively as a crew and reply your questions at an All Palms later right now.
All through the completely different phases of our journey, we now have constructed an organization that cares for each other. We should do not forget that it’s all the time the individuals who construct the enterprise; every thing is derived from them and the way we deal with each other. Your skills, power, and relentless pursuit of excellence are what preserve me going. For the remainder of the week, I’m going to spend time thanking these departing and enabling their success whereas serving to our remaining groups manage shortly from this alteration. Subsequent week and thereafter, we’ll speak concerning the enterprise.