Uber Freight has laid off 150 workers, or about 3% of the phase’s complete head rely.
The layoffs have an effect on the division’s digital brokerage group, Uber Freight CEO Lior Ron mentioned Monday in a message considered by CNBC. They’re 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 might 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% yr over yr.
“As , the logistics market is presently going through a variety of headwinds which has impacted our buyer base in addition to the general business,” Ron instructed workers. “We accelerated hiring final yr inside sure areas of our Brokerage enterprise, planning for a distinct financial actuality, however the volumes didn’t materialize as anticipated.”
Uber CEO Dara Khosrowshahi mentioned last week on the World Financial Discussion board in Davos that he is not planning companywide layoffs.
The cuts observe 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 rely, weeks after ride-hailing platform Lyft reduce 13% of its head count.
Laid-off employees “will likely be prolonged departure packages and assist that features severance, prolonged healthcare and 2022 bonus cost, outplacement and profession assist, and if relevant, immigration providers,” Ron mentioned.
Uber releases its 2022 full-year earnings on Feb. 8.
