Uber Technologies, the global ride-sharing giant, announced on Wednesday, June 21, its plan to reduce its recruitment division by cutting 200 jobs. This strategic move is part of Uber's continuous efforts to optimise costs and ensure a consistent headcount.
The job cuts account for less than 1 per cent of Uber's expansive global workforce, which currently comprises 32,700 employees. This action comes after Uber had already laid off 150 employees in its freight services division earlier this year.
Sources cited by the Wall Street Journal reveal that the recent layoffs specifically aim at reducing 35 per cent of Uber's recruiting team. The news regarding these job cuts was initially reported by the Wall Street Journal earlier in the day.
It is worth mentioning that Uber had previously downsized its workforce by 17 per cent when the COVID-19 pandemic began in mid-2020. In recent months, the company has made smaller-scale reductions in contrast to its main competitor, Lyft.
Under the helm of new CEO David Risher, Lyft encountered notable difficulties in preserving profit margins and contending with Uber to expand its market presence. Consequently, the company was compelled to implement layoffs, amounting to around 26 per cent of its overall workforce in April, with an additional 700 employees being let go in late 2022.
In contrast, Uber conveyed its optimism in attaining operating income profitability by the conclusion of this year. In May, the company declared its commitment to maintaining a steady workforce, after experiencing a sequential decrease in headcount during the first quarter of 2023.
Uber's move to reduce its recruitment division is in line with its broader cost-cutting strategy. Through workforce downsizing and operational optimisation, the company seeks to enhance its financial performance and establish a stronger position in the highly competitive ride-sharing market.