Uber The cargo company laid off 150 employees, or about 3% of the segment’s total workforce.

The layoffs affected the division’s Digital Brokerage team, Uber Freight CEO Lior Ron said in a statement Monday seen by CNBC. This is the first layoff since 2020, in the first weeks of the Covid lockdown.

In 2017, Uber launched its trucking division with the idea that trucking companies and freight could come together using the same concept behind ride-hailing technology. The division generated $1.8 billion in revenue for the third quarter of 2022, a 336% year-over-year increase.

“As you know, the logistics market is currently facing a number of headwinds that have impacted our customer base as well as the industry as a whole,” Ron told employees. “Last year, we accelerated hiring in certain areas of our brokerage business as we planned for a different economic reality, but volumes did not materialize as expected.”

Uber CEO Dara Khosrowshahi said at the World Economic Forum in Davos last week that he is not planning any company-wide layoffs.

The cuts followed much deeper layoffs in tech Alphabet, Meta, Amazon, Microsoftand Twitter. Delivery service DoorDash laid off 1,250 employees, or 6% of its workforce, in November 2022, just weeks after ride-sharing platform Lyft cut 13% of its workforce.

Laid-off employees “will receive extended severance packages and support that includes severance pay, extended health care and bonus payments in 2022, relocation and career development support and, where applicable, immigration services,” Ron said. .

On February 8, Uber publishes its 2022 earnings.

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