Thursday, February 9, 2023

Uber Freight cuts 150 jobs, about 3% of the unit’s head count

Uber Freight has laid off 150 workers, or about 3% of the section’s whole head depend.

The layoffs have an effect on the division’s digital brokerage staff, Uber Freight CEO Lior Ron mentioned Monday in a message considered by CNBC. They are the primary layoffs since 2020, within the early weeks of Covid lockdowns.

Uber launched its freight unit in 2017 with a perception that trucking firms and laden items may very well be matched utilizing the identical idea that underpinned the corporate’s ride-hailing know-how. The unit booked $1.8 billion in income for the third quarter of 2022, up 336% 12 months over 12 months.

“As you know, the logistics market is currently facing a number of headwinds which has impacted our customer base as well as the overall industry,” Ron advised workers. “We accelerated hiring last year within certain areas of our Brokerage business, planning for a different economic reality, but the volumes did not materialize as expected.”

Uber CEO Dara Khosrowshahi mentioned last week on the World Economic Forum in Davos that he is not planning companywide layoffs.

The cuts comply with far deeper tech layoffs at Alphabet, Meta, Amazon, Microsoft and Twitter. In November, supply service DoorDash laid off 1,250 workers, or 6% of its head depend, weeks after ride-hailing platform Lyft lower 13% of its head count.

Laid-off employees “will be extended departure packages and support that includes severance, extended healthcare and 2022 bonus payment, outplacement and career support, and if applicable, immigration services,” Ron mentioned.

Uber releases its 2022 full-year earnings on Feb. 8.

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