Doordash lays off about 1,250 employees, also affects Wolt – Economy

US-based Doordash acquired Wolt a year ago. The business is now beginning its layoffs.

Doordash, a platform for food delivery, has announced that it is dismissing more than a thousand staff members.

“This is the most challenging move I am announcing in Doordash’s nearly ten-year history. By about 1,250 workers, we are reducing the number of employees at the company “Tony Xu, CEO of Doordash, says this in a memo to staff that was distributed on Wednesday.

Xu claims that during the coronavirus outbreak, US-based Doordash expanded along with an increase in the number of its staff members. Redundancies are now necessary because of the recent sharp increases in costs.

About a year ago, the US corporation acquired the Finnish Wolt. The layoffs will also affect Wolt’s employees, according to Doordash.

Wolt assures HS that its staff or operations won’t be significantly impacted by Doordash’s layoffs. Germany and Japan are each making dozens of layoffs. There is no information provided on the number of Wolt employees who will be let go or whose positions would be affected.

The adjustments have no effect on the operations or functions of the couriers, and Wolt’s employees in Finland are not immediately affected by the layoffs.

HS is informed that at this time, no interviews will be conducted on the subject.

The acquisition price for Wolt remained at 2.8 billion euros once the transfer to the United States was completed.

For platform and technology companies, this has been a challenging year. As interest rates increase and stocks decline, their market prices have collapsed. Since the start of the year, Doordash’s share price has dropped by more than 62 percent.

Immediately following the announcement of the layoffs on Wednesday, the stock increased by 5%.

Xu claims that individuals who were let go received the news via email. Xu claims that those who work abroad also receive messages with information about their personal circumstances.

oli doordashilla At the start of the year, The Wall Street Journal employed over 8,600 people. The workforce was already close to 20,000 people when the Wolt acquisition was finalized in the summer.

By Editor

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