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

Uber Freight has laid off 150 staff members, or about 3% of the segment’s full head count.

The layoffs have an effect on the division’s electronic brokerage team, Uber Freight CEO Lior Ron stated Monday in a concept seen by CNBC. They are the 1st layoffs considering the fact that 2020, in the early months of Covid lockdowns.

Uber introduced its freight device in 2017 with a belief that trucking companies and laden items could be matched working with the exact same concept that underpinned the firm’s experience-hailing technological innovation. The unit booked $1.8 billion in income for the 3rd quarter of 2022, up 336% yr around yr.

“As you know, the logistics marketplace is at this time facing a range of headwinds which has impacted our consumer foundation as nicely as the in general business,” Ron explained to staff. “We accelerated employing last yr inside of sure locations of our Brokerage enterprise, scheduling for a unique economic actuality, but the volumes did not materialize as anticipated.”

Uber CEO Dara Khosrowshahi said very last 7 days at the Environment Financial Forum in Davos that he is just not organizing companywide layoffs.

The cuts comply with significantly further tech layoffs at Alphabet, Meta, Amazon, Microsoft and Twitter. In November, supply provider DoorDash laid off 1,250 employees, or 6% of its head count, weeks just after trip-hailing system Lyft reduce 13% of its head depend.

Laid-off workforce “will be prolonged departure deals and help that includes severance, prolonged health care and 2022 bonus payment, outplacement and occupation guidance, and if relevant, immigration companies,” Ron explained.

Uber releases its 2022 comprehensive-calendar year earnings on Feb. 8.