Uber Freight cuts 150 jobs, about 3% of the unit’s head rely

Uber Freight has laid off 150 workers, or about 3% of the section’s complete head rely.

The layoffs have an effect on the division’s digital brokerage workforce, Uber Freight CEO Lior Ron mentioned Monday in a message considered by CNBC. They’re the primary layoffs since 2020, within the early weeks of Covid lockdowns.

Uber launched its freight unit in 2017 with a perception that trucking corporations and laden items might be matched utilizing the identical idea that underpinned the corporate’s ride-hailing expertise. The unit booked $1.8 billion in income for the third quarter of 2022, up 336% yr over yr.

“As you already know, the logistics market is at present dealing with various headwinds which has impacted our buyer base in addition to the general business,” Ron instructed workers. “We accelerated hiring final yr inside sure areas of our Brokerage enterprise, planning for a special financial actuality, however the volumes didn’t materialize as anticipated.”

Uber CEO Dara Khosrowshahi mentioned final week on the World Financial Discussion board in Davos that he is not planning companywide layoffs.

The cuts comply with far deeper tech layoffs at Alphabet, Meta, Amazon, Microsoft and Twitter. In November, supply service DoorDash laid off 1,250 staff, or 6% of its head rely, weeks after ride-hailing platform Lyft reduce 13% of its head rely.

Laid-off workers “can be prolonged departure packages and assist that features severance, prolonged healthcare and 2022 bonus cost, outplacement and profession assist, and if relevant, immigration providers,” Ron mentioned.

Uber releases its 2022 full-year earnings on Feb. 8.