Uber Freight Bows Down To Macro Uncertainties, Lets Go Of 150 Employees

Uber Technologies, Inc UBER Freight fired 150 employees, about 3% of the segment's total headcount.
The layoffs affect the division'sdivision's digital brokerage team, CNBC reports citing Uber Freight CEO Lior Ron.
The downsizing comes after previous releases undertaken in 2020 in response to the pandemic.
Uber launched its freight unit in 2017. The unit booked $1.8 billion in revenue for the third quarter of 2022, up 336% year over year.
Ron told employees. "We accelerated hiring last year within certain areas of our Brokerage business, planning for a different economic reality, but the volumes did not materialize as expected."
The affected employees will receive departure packages and support, including severance, healthcare, bonus payment, outplacement, and career support.
Last December, Uber CEO Dara Khosrowshahi said it did not look to downsize employee strength, even though competitors slashed staff to deal with an uncertain economic outlook.
Rivals from DoorDash Inc DASH to Lyft Inc LYFT downsized strength to cope with the macro headwinds.
Khosrowshahi has said the company took a more conservative stance on hiring and other investments.
In 2020 Uber dismissed more than 6,000 employees or about 25% of the workforce.
Khosrowshahi added that Uber has benefited from a shift in consumer spending from retail to services.
Price Action: UBER shares traded lower by 0.54% at $30.37 on the last check Tuesday.