Uber to Lay off 35% staff from recruitment team, term it important to ‘streamline costs’

New Delhi, 22nd June 2023: Uber, global ride-sharing company, revealed intentions to slash 200 workers in its recruitment branch on Wednesday. This decision is part of Uber’s effort to keep its staffing levels consistent throughout the year.

The employment reduction represents less than 1% of Uber’s global workforce, which now stands at 32,700 individuals. Earlier this year, the business laid off 150 workers in its goods services sector.

According to the Wall Street Journal, the recent layoffs account for around 35% of Uber’s recruiting crew.

The company’s continued efforts to optimise operations and increase cost efficiency prompted has the decision to downsize workforce.

However, in comparison to its main competitor in the US, Lyft, Uber has reduced its employees on a smaller scale in recent months.

Lyft made massive personnel layoffs in April under the direction of new CEO David Risher, slashing around 26% of the overall workforce.

Furthermore, the corporation laid off approximately 700 staff late last year. Lyft implemented these procedures in an effort to protect profit margins and boost its market position in comparison to its larger competition, Uber.

Uber declared in May that it expects to attain operational income profitability this year, indicating a strong financial outlook for the company. The decision to keep the workforce flat comes after a sequential reduction in headcount during the first quarter of the year.

Uber seeks to find a balance between operational efficiency and serving the demands of its ride-sharing services by maintaining a consistent workforce count.