Uber Freezes Hiring, Drafting Plans To Cut Jobs

Uber Technologies Inc. stated that a freeze was established for staff working on software and services across the U.S. and Canada because of the increasing losses in the ride-hailing business.

An Uber spokesperson said Friday that the firm based in San Francisco has stopped recruiting fresh software engineers and product managers. Those teams surpassed their recruitment targets for the year, he said. The freeze does not include Uber’s freight employees or self-employed cars.

“We continue to employ talent aggressively, including many technicians, around the globe,” the spokesperson said. “Some teams are momentarily paused while we make sure that we are both effective and efficient in staffing our strategic objectives.”

As revealed previously that choice to Uber comes after a painful second quarter. The business missed income expectations and posted its largest-ever net loss of $5.24 billion. The inventory is 11 percent lower than its initial public offering price in May. Uber said it cut 400 marketing staff worldwide last week. Along with the freeze, movements indicate that after years of fast development Uber has become more careful about headcount.

The business will reject approximately 400 staff. Dara Khosrowshahi, the CEO, informed the email staff on Monday about the modifications.

“Today, there’s a general sense that we’ve slowed down as we have grown fast,” wrote Khosrowshahi in the Bloomberg revised email. “This naturally happens as firms grow, but it has to be dealt with rapidly.” Uber went to the public in May and is now trading just below the IPO price.

The business based in San Francisco and it’s home city rival Lyft Inc. are under investor pressure for heavy loss. On Monday, as reported that after less than two years on the job, Lyft is dividing up with its chief operating officer, Jon McNeill.

The decrease in employees reflects approximately 1.6% of Uber employees worldwide. It is the first major marketing and communications reorganization since Jill Hazelbaker, the long-term executive, took over the group last month. She succeeded Rebecca Messina, the former Chief Marketing Officer who supervised a squad of approximately 1200 during her nine-month tenure.

“Many of our teams are overwhelming and unclear, which can lead to mediocre results,” Khosrowshahi wrote to his staff. “I’m here to win a very important race.”

Uber CEO Dara Khosrowshahi also said SoftBank “don’t put good money after the bad” and the business and its economic backers are in line as the Japanese conglomerate sets up another megafund.

Uber and SoftBank CEO Masayoshi Son are on the same website as the SoftBank 2 Vision Fund is preparing to invest in businesses that could compete with the horse hailing giant, said Khosrowshahi, appearing on CNBC’s’ Squawk on the Street.’

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