Uber Layoffs: More Than 200 HRs Are Out!

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The major ride-sharing company Uber Technologies revealed on June 21 its intention to eliminate 200 jobs from its recruitment division. This tactical choice is a component of Uber’s ongoing initiatives to reduce costs and maintain a steady workforce. 

The job cuts affected less than 1% of Uber’s massive, international workforce—which currently numbers 32,700 employees. Uber has now taken this action following the 150 job cuts earlier this year in its freight services division.

According to sources cited by the Wall Street Journal, the recent layoffs are intended to reduce Uber’s recruiting team by 35%. The Wall Street Journal was the first outlet to break the news of these layoffs earlier in the day.

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It is important to note that when the COVID-19 pandemic started in mid-2020, Uber had already reduced its workforce by 17%. In contrast to its main rival, Lyft, the company has recently reduced staff on a more modest scale.

Lyft faced significant challenges maintaining profit margins and competing with Uber to increase its market share while being led by new CEO David Risher. As a result, the company was forced to implement layoffs, which affected about 26% of its entire workforce in April. Another 700 employees will be let go in late 2022.

Uber, on the other hand, expressed optimism about achieving operating income profitability by the end of this year. After experiencing a sequential decline in headcount during the first quarter of 2023, the company announced in May that it was committed to maintaining a steady workforce.

Uber’s decision to cut back on its recruitment division is consistent with its overall cost-cutting plan. The company aims to improve financial performance and forge a stronger position in the fiercely competitive ride-sharing market through workforce reduction and operational optimization.

About Wrighter

Wrighter covers news across the global on Human Rights, Migrants Rights, and Labor Rights. Wrighter has vast experience in writing and is a doctor by profession.

Wrighter

Wrighter covers news across the global on Human Rights, Migrants Rights, and Labor Rights. Wrighter has vast experience in writing and is a doctor by profession.

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