Uber incurs losses, stops hiring in the US temporarily

The freezing of hiring is expected to help cut costs in the face of net loss of over five billion dollars in the second quarter.

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Hiring for software and services has been temporarily frozen at Uber Technologies, for the US and Canada operations, in the face of growing losses.

The ride-hailing company based in San Francisco is not recruiting any new software engineers and product managers as they had already exceeded the annual hiring goal. However, workers will continue to be hired for the Company’s autonomous and vehicles businesses.

The Company revealed that the freeze is just a temporary one and will only impact a few teams, and that the move has been made to ensure efficiency in staffing.

It is reported that Uber’s revenues were rather poor in the second quarter. In fact, it incurred the biggest ever loss of about $5.24 billion. The stock has also gone down by 11 per cent since its initial public offering price.

Recently, the Company had announced the reduction of its 1200 strong global marketing team by 400, in order to bring down costs and do away with overlapping work. Apparently, the Company had too many oversized teams, which is leading to not just unnecessary overlapping in terms of work, but also decision-making, and poor results.

Three board members quit the Company not long ago, along with the chief operating officer and chief marketing officer. With two senior people retiring, the Company had to undergo a reshuffle too.

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