Uber announced last Wednesday (21) dismissal of 200 employees who worked in the US recruiting department. The move is part of the company’s plan to maintain a stable workforce while looking to cut costs in the current economic climate.

Layoffs make up 35% of Uber’s recruiting team and affect less than 1% of the global workforce a company with over 32,000 employees worldwide. The move comes after the company laid off 150 employees from its freight division earlier this year, representing a 3% reduction in headcount since the start of 2023.

According to a memo sent to employees, Uber’s director of human resources Nikki Krishnamurthy said the talent acquisition team needs to be refocused in line with the company’s new hiring strategy. This change comes in a context where Uber has already announced that it will be smarter about hiring.

It is worth noting that Uber reduced its team by 17% at the beginning of the COVID-19 pandemic, in 2020. However, its cuts were much smaller compared to those of its main US rival, Lyft, which had at least three massive layoffs since last year, laying off 26% of its entire workforce.

Uber is optimistic about generating operating profit by the end of 2023.

Despite the layoffs, Uber made it clear to investors in May that the company could make an operating profit this year. This perspective is preserved even when cutting plans. Interestingly, this is the second wave of layoffs for Uber after they said earlier this year that they had no plans for mass layoffs.

Still pondering cost-cutting plans and solutions to increase its profits, Uber said it would stick to video ads across all of its apps. According to Mark Grether, vice president and general manager of Uber’s advertising division, the company could earn $1 billion in 2024 from advertising revenue alone.

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Via: Earth

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