Uber won’t cut jobs despite mounting tech layoffs: CEO

UBER is not considering cutting jobs even as competitors from DoorDash to Lyft slash staff to deal with an uncertain economic outlook, chief executive officer Dara Khosrowshahi has said.

“No, we’re in a good place,” he told Bloomberg News after speaking at the Economic Club of Chicago on Thursday (Dec 1), in response to a question about whether the ride-hailing giant will reduce its headcount.

His comments stood out among tech peers that have cut staff by the thousands. Uber’s rival Lyft said last month that it would reduce headcount by 13 per cent, and hive off its first-party vehicle business. Food-delivery giant DoorDash announced that it would cut 1,250 jobs to rein in expenses. 

Uber has avoided widespread layoffs, although it is taking a more conservative stance on hiring and other investments, said Khosrowshahi. A major scale-back was undertaken in 2020, when Uber dismissed more than 6,000 employees, or about a quarter of the workforce at the time, at the height of the pandemic.

In November, Uber reported that third-quarter revenue jumped 72 per cent to US$8.34 billion, which assuaged investors’ concerns that rising inflation would deter customers from hailing a ride or ordering take-out.

“We’re seeing zero signs of weakness,” Khosrowshahi said at the event, adding that Uber has been the beneficiary of a shift in consumer spending, from retail to services. 

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

He was also optimistic about the supply of drivers on the platform, despite a protracted shortage that has raised fares and wait times. He said that periods of economic uncertainty typically spur people to seek out hustles in ride-hailing or food-delivery. “Our driver base has increased substantially,” he said. BLOOMBERG