DoorDash latest to cut jobs amid ballooning costs

STORY: DoorDash on Wednesday became the latest company to announce widespread layoffs, a victim of a sudden drop in demand from inflation-wary customers.

The food-delivery service – which had gone on a hiring spree at the height of the health crisis to cater to those stuck at home - will now cut 1,250 jobs, or 6% of its workforce, to control ballooning costs.

The announcement came the same day CNN said layoffs were underway at the network, and a day after media company AMC networks said it would cut 20% of its U.S. workforce.... And after weeks of layoff announcements from a range of companies – from Big Tech’s Meta Platforms and Amazon to Big Banks Barclays and Goldman Sachs.

Nancy Daoud is a private wealth advisor for Ameriprise Financial.

“You’re gonna see this across the board. There are gonna be substantial layoffs. The reality here, from a dollar and cents point of view, is inflation is cutting into corporate profits.”

As for DoorDash, its CEO said in a memo to employees that (quote) “We were not as rigorous as we should have been in managing our team growth,” adding, “That's on me.”

The company's shares, which have fallen more than 60% this year, were up in early trading.