Tony Xu's Message to DoorDash Employees - DoorDash Newsroom

Tony Xu’s Message to DoorDash Employees – DoorDash Newsroom

Earlier today, Tony Xu shared the following with DoorDash employees:

This is the most difficult change to DoorDash that I have had to announce in our almost 10 year history. Today, we are reducing our workforce by approximately 1250 people and saying goodbye to many talented teammates. If you’re one of those affected, I’m so sorry and apologize for waking some of you up to this news instead of reading it during more normal hours.

I know for many of you today’s news will come as a shock, especially as our business remains strong and continues to grow. That’s why I think it’s important that I explain how I came to this decision, what we’re doing for those leaving DoorDash, and why I’m optimistic about our future.

How we got here

As with all things, I want to begin and discuss the factors within our control that led to today’s announcement and take responsibility for that decision. Before COVID-19, DoorDash was actually undersized as a business. The pandemic has presented sudden and unprecedented opportunities to meet the changing needs of merchants, consumers and Dashers. We accelerated our hiring to catch up with our growth and launched many new businesses in response to feedback from our audiences.

Most of our investments are paying off, and although we have always been disciplined in the way we have managed our business and operational metrics, we have not been as rigorous as we should have been in managing the growth of our team. It’s on me. As a result, operating expenses increased rapidly.

Now let’s recognize the macro situation. Our business has been more resilient than other e-commerce businesses, but we are also not immune to external challenges and growth has declined from our pandemic growth rates. While our business continues to grow rapidly, given how quickly we’ve been hiring, our operating expenses – if they don’t decrease – will continue to outpace our revenues.

I did not take this decision lightly. We have reduced and will continue to reduce our non-staff operating expenses, but that would not be enough to close the gap. This harsh reality ultimately led me to make this painful decision to downsize our team.

Support for outgoing teammates

Working at DoorDash means striving for excellence every day. Those of you who are leaving have chosen this pursuit, and I am grateful to each of you for helping DoorDash get to where it is today.

For those affected, you will receive an email notification within the next 15 minutes on your personal devices to both your DoorDash and your personal email address.

Here’s how we’ll support you during this difficult time of transition:

  • Pay + RSU vest: Anyone affected will receive 17 weeks (13 weeks + 1 four-week severance lump sum) of compensation, as well as your February 2023 stock vest.
  • Health care: All benefits will continue through March 31, 2023. Thereafter, employees will be able to enroll and pay for COBRA coverage for up to 18 months.
  • Immigration assistance: We will set the termination date for March 1, 2023, giving those with visa applications (and who wish to remain in the United States) as much time as possible to find new employment.
  • Career transition: We will create an opt-in directory for companies to contact you and offer recruitment support to help you find your next job. You are some of the hardest working, most committed and operationally excellent people companies can find, and we are confident that you will add value to any new organization you join.

Some of these details will be different for our teammates outside of the United States, and each affected employee will receive an email with information specific to them. For the Wolt team, you will soon hear from Miki.

Although there is no effective way to manage this process, we strive to treat each of you with respect and integrity. Each of you who are affected will have the opportunity to speak with a leader this week. We will send information about scheduling these conversations in addition to outlining other details, including a process for you to say goodbye to your teammates and access the necessary systems for expense and payroll information.

The path to follow

While I want to focus today’s attention on our talented teammates who are leaving, I wanted to say a few words to the team who are staying and carrying the baton. While today’s news is painful, I continue to be very optimistic about our future and convinced of the important role we can play in the world.

DoorDash has always been a resilient company. During the first half of our history, we were consistently short of cash and resources compared to our peers. Today, we are a market leader still in the early stages of becoming the local commerce company that defines the world. We have grown from one business (our restaurant marketplace in the US) in one country to five businesses serving 27 countries, across merchants in every local retail category on our marketplace and platform . Our business – like the local economies we serve – has been resilient and our execution has been dynamic in the face of a global pandemic, persistent inflation, energy crisis, slumping demand and war. The track ahead of us is huge and we have created tremendous momentum. If we can achieve our mission of growing and empowering local economies around the world, not only will we prosper as a business, but I also believe a lot of good will be achieved in creating a world where millions of merchants can thrive, bringing out the best in the spirit and personalities of our neighborhoods.

Just as our mission has not changed, neither has our strategy. Our business fundamentals remain solid. But as I said before, what got us here will not necessarily get us to the next step and we have to adapt some of our tactics. Looking ahead, we believe we have redefined the size and shape of our organization to align with our strategic priorities. We must maintain this level of discipline and act with the passion, efficiency and creativity of the young startup we once were while leading with responsibility for the market leader we have become. One of the results of this approach is that we will continue to hire and build recruiting capacity in a more focused and rigorous manner. We will discuss how we will proceed together as a team and answer your questions during an All Hands later today.

Throughout the different phases of our journey, we have built a company that cares for each other. We must remember that it is always the people who build the business; everything flows from that and how we treat each other. Your talents, your energy and your relentless pursuit of excellence are what keep me going. For the rest of the week, I’ll be spending time thanking those who are leaving and enabling their success while helping our remaining teams get organized quickly from this change. Next week and beyond we will talk about the company.


This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “could”, “should”, “intend”, “target”, “project”, “contemplate”, “believe”, “estimate”, “aim”, “try”, “predict”, “potential”, or “continue” or the negative of these words or other similar terms or expressions which relate to our expectations, strategy, plans or intentions.

Forward-looking statements in this communication include, but are not limited to, our plans and expectations regarding our financial condition and operating performance, our investment approach, trends in our business, the effectiveness of our strategies and our opportunities. Steps. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties relating to to: competition, managing our growth and corporate culture, our financial performance, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this communication are also subject to other risks and uncertainties that could cause actual results to differ from expected results, including those described in more detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2021 and our quarterly reports on Form 10-Q. All forward-looking statements contained in this communication are based on information available to DoorDash and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law.

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