Uber Technologies is reportedly reducing its 32,700-strong workforce by less than one per cent as part of its efforts to cut costs. This round of layoffs will do away with 200 jobs in the recruitment division, impacting 35 per cent of the division.
The ride-share company does not intend to increase headcount this year.
In January this year, Dara Khosrowshahi, CEO, Uber, had stated at the Davos World Economic Forum that the company had no plans to lay off employees. However, the company did reveal its intention to cut some jobs based on stricter performance reviews. At the same time, it had also said that it intended to hire new employees for the roles that would be thus affected.
In May 2023, Uber was in the news for all the wrong reasons when Bo Young Lee, head – diversity, equity and inclusion (DE&I), Uber, was sent on leave following allegations that she had been insensitive to people of colour.
Before that, in March, 2023, a California appeals court upheld a state law that permits companies such as Uber and Lyft to classify their drivers as independent contractors rather than employees. The decision is a significant win for app-based, on-demand companies and was praised by Uber’s chief legal officer as a victory that “preserves independence for drivers.”
The ruling is based on a measure called Proposition 22, which was passed in the state in 2020 with significant support from ride-share firms and food-delivery app platforms.