Uber to cut down on hiring in bid to focus on profitable growth

  • 📰 axios
  • ⏱ Reading Time:
  • 56 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 63%

United States Headlines News

United States Latest News,United States Headlines

Uber is cutting down on hiring and treating it 'as a privilege' in response to a 'seismic shift' in the market, its CEO told employees. Its stock fallen over 40% this year.

"We will treat hiring as a privilege and be deliberate about when and where we add headcount," Khosrowshahi said in an email to employees late Sunday, per CNBC. "We will be even more hardcore about costs across the board."

"After earnings, I spent several days meeting investors in New York and Boston," he wrote. "It’s clear that the market is experiencing a seismic shift and we need to react accordingly." "We have to make sure our unit economics work before we go big," he added. "The least efficient marketing and incentive spend will be pulled back."

"We have made a ton of progress in terms of profitability, setting a target for $5 billion in adjusted EBITDA in 2024, but the goalposts have changed," Khosrowshahi noted, referring to adjusted earnings before interest, taxes, depreciation, and amortization.Uber shares dropped roughly 11% by Monday afternoon. The stock has fallen more than 40% this year.Delivery has been a huge growth driver for Uber and helped it to weather the pandemic.

In his letter, Khosrowshahi wrote: "The primary [investor] questions were: 'Is Delivery a good business and why?' and 'What happens if we enter a recession?' We need to answer both of these questions with undeniably strong results."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Uber has tripled its fares due to fuel prices but their CEO admits he is profiting off of the situation & has needlessly raised fares.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 302. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Uber CEO Tells Staff Company Will Cut Down on Costs, Treat Hiring as a ‘Privilege'Uber will slash spending on marketing and incentives and treat hiring as a “privilege,” CEO Dara Khosrowshahi said in an email to staff on Sunday.
Source: NBCDFW - 🏆 288. / 63 Read more »

Stocks Making the Biggest Moves in the Premarket: Palantir, Rivian, Uber and MoreThe stocks making the biggest moves in premarket trading include Palantir, Rivian, Uber, and more.
Source: nbcchicago - 🏆 545. / 51 Read more »

Court battle brewing over firing of Chugach Electric CEOThe former CEO of Chugach Electric Association, fired after less than a month on the job, asserts he was unjustly terminated and is owed millions of dollars in damages, his attorney said
Source: adndotcom - 🏆 293. / 63 Read more »

Disney CEO Bob Chapek Makes A Mickey Mouse Mistake In Indiana Graduation SpeechThe executive might want to brush up on his Disney theme parks next time.
Source: HuffPostWomen - 🏆 27. / 68 Read more »

Bitstamp Introduces New Global CEO After Julian Sawyer's Sudden DepartureJean-Baptiste Graftieaux replaced Julian Sawyer as Bitstamp's new Global Chief Executive Officer.
Source: Crypto_Potato - 🏆 568. / 51 Read more »

Bitstamp appoints new CEO after Julian Sawyer's sudden departureBitstamp announced on Monday that CEO Julian Sawyer has left the company, with Europe CEO JB Graftieaux promoted to replace him.
Source: TheBlock__ - 🏆 464. / 53 Read more »