Uber Said to Cut Costs, Slow Down Hiring: Report

Uber will cut back 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 most recent 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 mandatory response to the “seismic shift” in investor sentiment, in accordance with the CNBC report.

“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.

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 must spend extra for labor.

The firm will now concentrate on reaching profitability on a free money move foundation, quite than adjusted earnings earlier than curiosity, taxes, depreciation, and amortization, in accordance with the CNBC report.

The experience hailing large expects to generate “meaningful positive cash flows” for the complete yr, in accordance with its newest earnings report.

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

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

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