DoorDash Inc. is laying off about 1,250 people in an effort to rein in expenses, according to a company memo from Chief Executive Officer Tony Xu viewed by Bloomberg.
“While our business continues to grow fast, given how quickly we hired, our operating expenses - if left unabated - would continue to outgrow our revenue,” Xu wrote in a letter to staff on Wednesday.
The San Francisco-based company is the latest technology firm to cut staff amid an uncertain economic outlook; but in contrast to other companies seeing a slowdown in consumer demand due to rising inflation, DoorDash’s order volumes have remained resilient, growing 27 per cent in the third quarter compared with last year and boosting revenue to $1.7 billion.
DoorDash reported adjusted earnings before interest, taxes, depreciation and amortization of $87 million in the period ending Sept. 30. The adjusted Ebitda metric strips out expenses like stock-based compensation or non-recurring costs that executives deem to be outside the scope of operations. Under generally accepted accounting principles, however, DoorDash is unprofitable. The company reported a loss of $296 million compared with $101 million a year earlier during the third quarter.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Protesters toss 250 rubber ducks onto TMX pipeline siteAbout 250 rubber ducks were scattered across a TMX pipeline construction site in Burnaby.
Read more »
Saputo drops as Spruce Point attacks dairy firm's deal spree - BNN BloombergSaputo tumbled as much as 7.8 per cent after Spruce Point Capital Management published a negative report, arguing that the Canadian dairy producer has overpaid for acquisitions that aren’t working out.
Read more »
Cost savings, staff retention packages discussed at hearing on Rogers-Shaw deal - BNN BloombergRetention packages at Shaw Communications will cost up to $50 million if the company's $26-billion proposed merger with Rogers Communications crosses the finish line.
Read more »
Gas prices in Canada: Analyst not expecting 'dramatic increases' - BNN BloombergGas prices have been dropping in Canada and one analyst says he expects the trend to continue into the near future.
Read more »
Bombardier says NetJets places firm order for four Global 8000 aircraft - BNN BloombergBombardier says NetJets has placed a firm order for four Global 8000 aircraft and will be the fleet launch customer for the jets.
Read more »
What the new GDP report might mean for the next Bank of Canada decision - BNN BloombergNew reports showing strong third-quarter growth in Canada’s economy will likely encourage the country’s central bank to continue with its pattern of hiking interest rates in a bid to curb high inflation, one economist says.
Read more »