Uber to cut costs, treat hiring as a ‘privilege’: CEO email

To address the shift in economic sentiment due to inflation and from the highs of the coronavirus pandemic, global ride-hailing Uber CEO Dara Khosrowshahi has told staff the company will rein in spending across the board to focus on investor returns.

Post the company’s January-March quarter earnings, where the company posted a loss of USD 5.9 billion, Khosrowshahi said he met several investors, which has made it clear that the market is experiencing a seismic shift, requiring Uber to react accordingly.

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The ride-hailing and delivery group will treat hiring as a "privilege" and pull back on the "least efficient" incentive and marketing spend, Khosrowshahi said in an email to employees.

"The average employee at Uber is barely over 30, which means you've spent your career in a long and unprecedented bull run," he said. "This next period will be different, and it will require a different approach."

Khosrowshahi said Uber had made "a ton of progress in terms of profitability" but "the goalposts have changed. Now it's about free cash flow."

Uber isn't the only tech company talking about a hiring squeeze. Last week, Meta also announced to its staff that it would scale back hiring as a way to tackle slow revenue growth.