On Wednesday, the world’s largest ride-sharing company, Uber, made public its intentions to reduce expenses by eliminating 200 employees in the company’s recruiting section. This action is being taken as part of Uber’s aim to maintain a consistent number of staff members throughout the year. The drop in employment is for less than 1 percentage point of Uber’s total workforce, which is presently 32,700 people worldwide. At the beginning of this year, the firm also terminated the employment of 150 people working in its goods and services section.
The Wall Street Journal reports that these most recent layoffs account for around 35 percent of Uber’s recruitment crew. The continual efforts of the corporation to optimise operations and increase cost effectiveness were a driving factor in the decision to reduce the number of employees. It is important to note that prior to the start of the epidemic in the middle of 2020, Uber had already cut the number of employees on its payroll by 17 percent.
In recent months, Uber has reduced its personnel on a smaller scale as compared to its primary competitor, Lyft, which has done the opposite.
In April, Lyft announced major changes to its personnel, lowering the total number of employees by around 26 percent. These layoffs were undertaken under the supervision of Lyft’s new CEO, David Risher. In addition, the corporation terminated the employment of around 700 of its staff members towards the end of the previous year. Lyft went ahead and implemented these changes in an effort to maintain healthy profit margins and improve its standing in the industry in comparison to its more established rival, Uber.
In May, Uber made public its anticipation that it would be profitable in terms of operational income by the end of this year, indicating that the firm had favourable financial prospects. The sequential decrease in headcount that occurred during the first quarter of the year was the catalyst for the decision to keep the workforce unchanged. By maintaining a consistent headcount, Uber hopes to achieve a balance between the company’s mission of maximising operational efficiency and serving the needs of its ride-sharing customers.
