News: Uber Technologies to cut costs and slow down hiring

Recruitment

Uber Technologies to cut costs and slow down hiring

CEO Dara Khosrowshahi tells staff that the ride-hailing company would slash costs due to a "seismic shift" in investor sentiment.
Uber Technologies to cut costs and slow down hiring

In a letter to its employees, Uber Technologies’ chief executive officer Dara Khosrowshahi stated that the company will slash marketing expenditure and reduce recruiting, according to a CNBC report. 

Last week, Facebook-owned Meta Platforms Inc said it would reduce its workforce growth. The ride-hailing company is the latest company to reduce spending in order to have a lean investment strategy.

According to the CNBC story, Khosrowshahi said Uber's strategy change was a necessary response to the "seismic shift" in investor sentiment.

"The least efficient marketing and incentive spend will be pulled back. We will treat hiring as a privilege and be deliberate about when and where we add headcount," the report quoted Khosrowshahi as saying.

Last week, Uber announced its driver base reached a post-pandemic peak, and it expects this trend to continue without substantial investment in incentives, a contrast to rival Lyft Inc, which said it will increase spending to hire more drivers. 

The firm will now seek to gain profitability on a free cash flow basis rather than adjusted earnings before interest, taxes, depreciation, and amortisation, according to the report.

“We have made a ton of progress in terms of profitability, setting a target for $5 billion in Adjusted EBITDA in 2024, but the goalposts have changed,” Khosrowshahi said. “Now it’s about free cash flow. We can (and should) get there fast,” the report added.

Read full story

Topics: Recruitment, Technology

Did you find this story helpful?

Author


QUICK POLL

What are the top work tech investment focus areas for your company currently?

What shifts have you seen in the employer-employee relationship?

READ our latest issue for perspectives on what's changing and how employers are responding.