DoorDash CEO tells staff the company plans a major slowdown in headcount growth as it focuses on controlling costs
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said the company plans to grow headcount by only 10-15% this coming year, according to a person who attended the gathering.That’s a far cry from last year when DoorDash’s employee ranks more than doubled to over 8,600, according to regulatory filings. Xu and Chief Financial Officer Prabir Adarkar said in the company meeting that DoorDash needs to control employee growth and do it without hurting its business. A company representative declined to comment.
The newly conservative approach comes as DoorDash faces market uncertainty. Despite posting a strong fourth quarter, the shares are off more than 50% from their high last November. The company recently had to address the weak stock price byoffering extra equity grants
to some employees to compensate for declines in the value of their existing awards.DoorDash grew substantially during the pandemic as stay-at-home orders fueled customers’ desire to order delivery meals. Its revenue quadrupled in the fourth quarter of 2020 compared with the same period in 2019. But a downturn in tech stocks along with concerns that a post-pandemic period will mean slower growth for food orders has weighed on the stock.