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Uber CEO Dara Khosrowshahi has informed employees that the ride-sharing company will cut back on expenditures.
“After earnings, I spent several days meeting investors in New York and Boston,” said Khosrowshahi in an email to employees. “It’s clear that the market is experiencing a seismic shift and we need to react accordingly.”
The tech market as a whole has seen disappointing stock figures in the last few months, leading the world’s largest companies to pull back on spending in anticipation of falling revenues.
Uber’s shares fell around 6% this morning, and their stock has fallen over 40% year-to-date.
While the company’s revenues have spiked in the post-pandemic era, it still posted a $5.9 billion loss during the first quarter of the year.
For Uber, this cost cutting measures will take place across its marketing, incentives, and hiring initiatives.
“We will treat hiring as a privilege and be deliberate about when and where we add headcount,” said Khosrowshahi. “We will be even more hardcore about costs across the board.”
Moving forward, Uber will set its sights on being profitable on free cash flow rather than basing it on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Just last week, Meta also revealed that it would be slowing down its hiring efforts for mid-level and senior-level positions.
