Uber suspends hiring amid record loss | Business

After posting a $ 5.236 billion loss in the second quarter, Uber froze hiring employees in the United States and Canada. The company canceled interviews it had scheduled with some professionals and told others that their applications would be put on hold.

Uber app

According to the Yahoo News, Uber’s decision holds true for software engineers and product managers. THE Bloomberg, the company said the freeze occurred because the two teams exceeded the hiring goals for the year.

The measure does not affect the autonomous vehicle and cargo transport divisions. A spokesman for the company says hires continue to occur worldwide, but that some have been suspended to ensure that the steps are being met.

“We continue to hire talent aggressively, including many engineers, around the world,” he said. “We temporarily interrupt some teams, while ensuring that we are being effective and efficient in recruiting employees in the face of our strategic priorities.”

With 100 million monthly users, Uber had a record loss between April and June. The result was pulled down due to the stock compensation for employees after the company’s debut on the stock exchange in May. The bonus exceeded $ 4 billion.

Although this value is not included in the balance sheet, the company lost US $ 1.2 billion, a greater loss than in the first quarter of 2019. The loss was expected, but the company, which debuted on the stock exchange with shares quoted at US $ 45 , saw them drop 6% after the balance sheet was released.

To shareholders, Uber CEO Dara Khosrowshahi expressed optimism. “I think my team and I are well prepared, but I think we are very, very early on this incredible journey,” he said.

What counts in Uber’s favor is your cash. The company ended the second quarter with a reserve of $ 13.7 billion, indicating that it could maintain the pace of loss for more than two years.

Of course, this is not the plan. To cut costs, the company laid off 400 people from its marketing department, and to increase revenue, it has invested in autonomous vehicles, which would dispense with the need to share the value of the races with drivers.

With information: Gizmodo, Ars Technica.

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