Uber Said to Cut Costs, Slow Down Hiring: Report

Uber will reduce hiring and cut back expenditure on its advertising and incentive actions, CNBC reported on Monday, citing a letter from Chief Executive Officer Dara Khosrowshahi.

The ride-hailing firm turns into the newest to rein in prices to have a lean funding mannequin, after Facebook-owner Meta stated final week it might decelerate the expansion of its workforce.

Khosrowshahi stated Uber’s change in technique was a crucial response to the “seismic shift” in investor sentiment, in accordance to the CNBC report.

“The least environment friendly advertising and incentive spend can be pulled again. We will deal with hiring as a privilege and be deliberate about when and the place we add headcount,” the report quoted Khosrowshahi as saying.

Uber stated final week its driver base is at a post-pandemic excessive, and the corporate expects this to proceed with out important incentive investments, a pointy distinction to rival Lyft which has stated it wants to spend extra for labor.

The firm will now concentrate on attaining profitability on a free money movement foundation, moderately than adjusted earnings earlier than curiosity, taxes, depreciation, and amortization, in accordance to the CNBC report.

The experience hailing big expects to generate “significant constructive money flows” for the total yr, in accordance to its newest earnings report.

Khosrowshahi added in his letter that Uber’s meals supply and freight companies want to develop sooner, the CNBC report added.

Uber didn’t instantly reply to a Reuters’ request for remark.

© Thomson Reuters 2022