DoorDash, the company that brings food to your doorstep announced layoffs. In 2022, the big boss, Tony Xu, had to tell 1,250 DoorDash workers that they wouldn’t be part of the team anymore. It’s a bummer for those employees, but let’s find out why this happened and what it means.
So, DoorDash had a super busy time during the pandemic when everyone was ordering food online. But as things got back to normal, the demand for food delivery slowed down a bit. DoorDash hired extra people during the crazy times. Later, they needed to lay off workers to balance things out and keep the company running smoothly.
DoorDash wanted to be more efficient and save money, so they made their team a bit smaller. The good part is that the employees who got laid off got a severance package and some to keep their health insurance for a few months.
Why The Layoffs?
Sometimes, when companies try to grow and also make money, they have to make tough choices. Unfortunately, employees might be affected.
Behind all the business talk, it’s important to remember that real people with families and bills are part of this story. Even though it’s a downer, some people are hopeful and looking for new opportunities.
Surprisingly, even with the challenges, DoorDash’s stock market performance stayed strong. Investors seem to believe in DoorDash’s future success, showing that the company can handle challenges and keep moving forward. Let’s see what DoorDash does next!
Will Layoffs Continue In 2024?
Companies are still laying off many workers in 2024. A lot of jobs have been cut in different areas like finance, travel, tech, and media. Leaders say they’re making these cuts to rearrange things. Because they’re worried about the economy, with high interest rates and prices going up.
Here’s a list of recent job cuts in 2024:
Alphabet (Google’s parent company):
They are laying off workers in their innovation lab called X to change how things work there. The lab’s new structure will help projects become independent businesses faster, with support from Alphabet and other backers. The layoffs will affect support staff, but we don’t know how many.
Amazon:
The big tech and retail companies are reducing jobs in their media divisions to focus on more important projects. They are laying off several hundred roles, and another part of Amazon, called Twitch, is cutting jobs by 35%.
American Airlines:
They confirmed plans to lay off 656 workers in their customer support department as they combined into one team. These workers help solve issues for customers after they’ve travelled.
Business Insider:
This news company is laying off about 8% of its workers as it makes changes. They want to focus more on their main audience and invest in areas that bring the most value.
Citigroup:
They are laying off 20,000 workers as part of their ongoing changes. The CEO says 2024 will be a turning point for the company.
Deutsche Bank:
They’re cutting 3,500 back-office jobs to save money. The aim is to reduce expenses by 2.5 billion euros, equivalent to around $2.7 billion.
DocuSign:
They’re laying off about 6% of their workers to make the company more efficient financially and operationally. Most of the cuts will be in sales and marketing.
Forbes:
This magazine is laying off 3% of its workers.
So, a lot of big companies are making changes, and many people are losing their jobs. It’s a challenging time for workers and the companies themselves.
What To Do If You Are Laid Off?
So, if you find out you’re laying off, here are some things to do:
Get Your Stuff and Ask for What You’re Owed:
After the official meeting where they tell you about the job loss, grab your things from work. Then, make sure you get what you’re supposed to, like severance pay, any bonuses, and benefits you haven’t used, such as vacation days.
Talk About Your Benefits:
Ask about health insurance continuation (it’s called COBRA), and check with your state’s Employment Office about possible coverage. Also, register for unemployment compensation to make sure you get the support you need.
Negotiate for More:
See if you can negotiate for additional benefits, like career coaching or assistance with your resume. Sometimes, there’s a standard package, but it’s worth asking for more.
Get a Laid-Off Employee Letter:
Ask for a letter from your company’s HR (Human Resources) stating that you were laid off and not fired due to poor performance. This can be handy when you’re looking for a new job.
Make Business Cards and Use LinkedIn:
Create business cards for networking and job hunting. Also, make sure your LinkedIn profile is up-to-date – it’s a great tool for job searching.
Join a Job Search Support Group:
Consider joining a job search support group or job club. It can help you stay positive and get tips from others who might be in a similar situation.
Remember, being laid off doesn’t mean you failed. Many people go through this, and it can lead to new opportunities. Stay positive, and don’t be afraid to ask for support.
Did DoorDash Change The Game in Delivery Services?
DoorDash had a really good year in 2023. Their stock, called DASH, doubled, making a strong comeback. People in the U.S. love ordering food from DoorDash, especially burgers, and they’ve realized the company delivers more than just food.
DoorDash did great during the pandemic and is still going strong. In the first nine months of 2023, they made $6.3 billion in sales, which is 33% more than the same time last year. This is impressive because some thought inflation might make people order less, but that didn’t happen.
DoorDash isn’t just about delivering food anymore. They now bring groceries, electronics, and other things to your doorstep. But, there are challenges because these areas are super competitive. Even though DoorDash’s stock is doing well now, it’s still not as high as it was in November 2021.
Interestingly, DoorDash hasn’t made a profit since it became a public company three years ago. This might be surprising, but their success last year caught many by surprise. In 2022, their stock dropped a lot, and they had to lay off workers.
In the report in November 2023, DoorDash said its sales for the third quarter were up 27% from 2022, reaching $2.2 billion. Even better, their losses went down compared to the same time in 2022. This news made their stock jump 15%, and it kept going up, closing 30% higher by the end of the year.
Even though DoorDash had some tough times in 2022, they turned things around in a big way last year. They’re not just a food delivery service; they’re making life more convenient for people. That’s why their customers keep coming back, even ordering things like ibuprofen after the holidays. DoorDash is not just a luxury; it’s becoming a part of people’s everyday lives.
Does DoorDash Have A Future?
DoorDash is planning to grow and do more exciting things. They want to go beyond just delivering food in the U.S. The boss, Tony Xu, shared this with the Financial Times. They’re teaming up with stores like Best Buy, so now you can even order things like TVs and speakers through DoorDash.
DoorDash is also buying other companies to spread its wings. They spent a big chunk, $3.5 billion, to bring a delivery startup from Finland called Wolt into their family. This move helps them do more in Europe.
Besides, DoorDash wants to show you ads on their app, like how Uber and Instacart do. They also have this thing called DashPass, where you pay $9.99 a month and get free delivery from some places. In December 2022, they had 15 million people using DashPass.
Now, let’s see what the experts think about DoorDash’s stock (the value of the company on the stock market). Some smart people upgraded DoorDash’s stock to “buy,” meaning they believe it’s a good investment. Analyst John Colantuoni thinks DoorDash can make more money in the next two years. Another analyst, Evercore’s Mahaney, also thinks DoorDash is doing well.
Now, there are some rules and stuff to keep an eye on. DoorDash’s delivery folks are independent contractors, not regular employees. There have been some debates and new rules in places like New York City and Seattle about how much they should get paid. DoorDash says it won’t hurt their business much, but we’ll see.
Even with all these twists and turns, DoorDash’s stock is doing well. It fell a bit when there were talks about new rules but bounced back when the final decision came out. It’s like a rollercoaster, but DoorDash is hanging in there.
Lastly, DoorDash’s stock is doing some amazing technical stuff. It got a high rating, 93 out of 99, which means it’s doing great compared to other growing stocks. And they’re on some fancy lists like IBD 50 and Tech Leaders. Right now, their stock is taking a little break after going up a lot in November.
All in all, DoorDash is on an exciting journey, and even though there are challenges, they’re staying positive and moving forward. Let’s see where their delicious delivery adventures take them next!
Final Words
In the end, DoorDash faced a tough decision with the layoffs, but they took steps to adapt and grow. While saying goodbye to some team members, the company aimed to become more efficient and stay strong in a changing market. DoorDash showed care by providing severance pay and continued healthcare, softening the impact on those affected. As they navigate challenges, including regulatory issues, DoorDash remains resilient. Surprisingly, their stock stayed robust, reflecting investor confidence.
