Uber to lay off 35% of its recruiting team to 'streamline costs'

Uber, the global ride-sharing giant, announced on Wednesday its plans to streamline costs by cutting 200 jobs in its recruitment division. This move is part of Uber's strategy to maintain a flat staff count throughout the year. The reduction in workforce represents less than 1 per cent of Uber's global workforce, which currently stands at 32,700 employees. Earlier this year, the company had also laid off 150 employees from its freight services division.

According to the Wall Street Journal, these recent cuts constitute approximately 35 per cent of Uber's recruiting team. The decision to downsize was driven by the company's ongoing efforts to optimize operations and improve cost efficiency. It is worth noting that Uber had previously reduced its staff count by 17 per cent at the onset of the pandemic in mid-2020.

In comparison to its chief rival, Lyft, Uber has implemented smaller-scale workforce reductions in recent months.

Under the leadership of new CEO David Risher, Lyft made significant workforce cuts in April, reducing approximately 26 per cent of its total workforce. Additionally, the company had laid off around 700 employees late last year. These measures were taken by Lyft in an attempt to safeguard profit margins and strengthen its position in the market vis-à-vis its larger competitor, Uber.

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In May, Uber announced its expectation to achieve operating income profitability this year, signalling positive financial prospects for the company. The decision to maintain a flat workforce follows a sequential decline in headcount during the first quarter of the year. By keeping the staff count steady, Uber aims to strike a balance between operational efficiency and meeting the demands of its ride-sharing services.

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