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Delivery service DoorDash is laying off 1,250 corporate workers as part of a continued cost-cutting effort, driven by tapering growth and overhiring, CEO Tony Xu said in a message to employees on Wednesday.

The company’s shares were up about 5% on the news.

DoorDash joins the ranks of Amazon, Meta, Twitter, HPand Lyft
 in imposing job cuts. Tech industry hiring ballooned during the Covid pandemic and has seen a harsh comedown in recent months as interest rates mute consumer demand and investor confidence.

DoorDash announced a slowdown in hiring earlier this year. It had 8,600 corporate employees as of Dec. 31, 2021.

DoorDash went public at the end of 2020 in a wildly successful IPO that saw shares soar 80% over initial pricing. In November 2021, it hit a peak valuation of $81.1 billion, despite never turning a profit.

DoorDash will offer 17 weeks of severance to affected employees. Healthcare will continue through March 2023. For overseas or visa-sponsored employees, the termination date will be Mar. 1, a decision that Xu told employees would give them “as much time possible to find a new job.” DoorDash will set a termination date of March 2023 for H1-B visa holders, allowing overseas workers as much time as possible to find a new opportunity.

DoorDash shares are down over 60% year-to-date.

Read more: Cnbc

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