Why DoorDash (DASH) Shares Are Trading Higher Today - DoorDash (NASDAQ:DASH)

DoorDash, Inc DASH downsized employee strength by 1,250 to rein in expenses, according to a company memo from CEO Tony Xu.
"While our business continues to grow fast, given how quickly we hired, our operating expenses - if left unabated - would continue to outgrow our revenue," Xu wrote as per a Bloomberg report.
The cuts will affect about 6% of the company's workforce, a mix of U.S. and non-U.S.-based staff.
Also Read: DoorDash Implements AI Robots For Smarter, Safer Workplace
DoorDash's operating expenses topped $2 billion in the third quarter, mainly due to stock-based compensation and the absorption of Wolt, the Finnish food-delivery company it acquired last year.
DoorDash is the latest technology firm to cut staff amid an uncertain economic outlook but in contrast to other companies seeing a slowdown in consumer demand due to rising inflation.
DoorDash's order volumes grew 27% in the third quarter.
The pandemic triggered consumers' affinity for takeout on the pandemic outbreak.
Competition in the sector has only intensified. The company has spent heavily to sustain growth by expanding its footprint in non-restaurant categories like convenience store items, groceries, and alcohol.
Price Action: DASH shares traded higher by 2.74% at $54.80 in the premarket on the last check Wednesday.

DoorDash Slashes 6% Of Its Workforce As Competition Weighs