Tech companies have long had moonshot visions for changing the way people eat and experience restaurants—some more dramatic than others. But recent signs suggest that the good times are over for these grand-planning tech disruptors: DoorDash, the restaurant delivery titan, announced on Wednesday that it was laying off 1,200 corporate employees, or 6 percent of the company’s workforce.
The staff cuts happened mere weeks after DoorDash executives offered a rosy outlook for its future. The company sharedthan Wall Street expected in November, and said its delivery business remained largely unaffected by inflation as customers continued to place orders, paying higher prices rather than give up a convenient meal.
In hindsight, this was all too much, too fast. The company’s CEO claimed full responsibility for the business decisions that led to this week’s layoffs. And he assured current employees that the news wasn’t a sign of more cuts to come, promising to continue hiring, albeit in a “more targeted” way. That could mean focusing less on delivering from restaurants and more on places like convenience stores.
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