According to CNBC, Uber is cutting recruitment and marketing activities. The face-to-face transportation company is added to a number of other giants who have decided to cut costs by proposing a more lenient investment model, such as Facebook-owned Meta Platforms.
The company’s CEO, Dara Kosrovsachi said that Uber’s change of strategy was a necessary response to the “seismic shift” in the investment climate. “Less cost-effective marketing and incentive spending will be cut. “We will treat hiring as a privilege and think about when and where we will add new employees,” said the Uber CEO’s report.
Last week, Uber announced that the company will not make significant incentive investments, unlike its competitor, Lyft, which has announced that it intends to spend more on labor. Kosrovsahi, however, added that Uber’s food & merchandise delivery business needs to grow faster. Uber shares sank about 2.5% in U.S. premarket trading. The stock is down more than 40% year-to-date.
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