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Germany is pushing the EU to relax capital requirements for banks’ safest bonds.November 14th - According to sources, Emirates Airlines is planning to use SpaceXs Starlink technology to upgrade its in-flight Wi-Fi service, despite not yet receiving government approval. The Dubai-based airline, one of the worlds most profitable carriers, has approximately 250 wide-body jets and has ordered over 300 more from Boeing and Airbus. The agreement is scheduled to be announced at the Dubai Airshow, which begins on Monday, according to sources. However, according to the company, the UAE is not currently among the countries authorized to use Starlink, so the deal will require a change in government policy. The internet service has also not yet been certified for use on Emirates iconic double-decker A380 aircraft.Tesla (TSLA.O) shares continued their pre-market decline, recently falling nearly 5%.November 14th - Even if the budget on November 26th is well-received by the market, political concerns in the UK could continue to weigh on the pound, Deutsche Bank FX strategist George Saravelos stated in a report. He believes that, in isolation, avoiding negative surprises in the budget would help the pound recover. However, lingering political risks will not allow the fiscal risk premium to be completely eliminated. These risks include the leadership challenge to Prime Minister Starmer. This uncertainty, along with the possibility that his successor might not prioritize fiscal discipline, could cause the risk premium to widen again.U.S. Labor Secretary Dremer: Hopefully, the September jobs data will be released next week.

DoorDash Eliminates 1,250 Positions to Curb Escalating Costs

Dec 01, 2022 11:05

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DoorDash Inc. announced on Wednesday that it will eliminate around 1,250 positions, or 6% of its total workforce, as a cost-cutting measure in response to declining demand.


DoorDash ramped up hiring to accommodate the surge of orders from those confined to their homes during the height of the pandemic, but a sudden fall in demand from inflation-conscious customers has caused the company's expenses to skyrocket.


"We should have been more vigilant in monitoring the expansion of our employees... It is my fault. As a result, operating expenses skyrocketed" CEO Tony Xu noted in a note to colleagues that was posted on the company's website.


If nothing was done, our operating expenses would continue to exceed our revenue, given how quickly we employed.


In morning trade, the shares of the corporation, which has declined by over 64 percent this year, was up approximately 5 percent.


DoorDash employs around 20,000 individuals and has delivery partnerships with Walgreens Boots Alliance (NASDAQ:WBA) and Shake Shack (NYSE:SHAK).


Given the prospect of a faster-than-expected decrease in consumer spending, a stronger focus on its cost structure is a positive sign, according to Angelo Zino, an analyst at CFRA Research.


In the first week of this month, DoorDash reported a quarterly financial loss of $295 million, which raised concerns about the future viability of delivery companies as economies recover.


The British meal delivery firm Deliveroo said at the end of October that its revenue growth would fall short of projections.


In recent weeks, DoorDash has joined Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and Twitter Inc (NYSE:TWTR) in laying off hundreds of employees in preparation for a potential economic downturn.


Xu noted that reducing non-headcount operating expenses "would not close the gap" while stressing that DoorDash has been more resilient than other e-commerce enterprises.

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