On Wednesday, Uber Technologies stated that it would be slashing two hundred jobs in its recruitment division, keeping its staff number flat.
Its stock price went up by 1.16% to $42.66 per share on June 21. However, it is expected to decline by -0.14% to $42.60 apiece in the upcoming session.
Under 1.00% of the company’s 32,700 global workforces would be affected. It would lay off 150 employees in its freight services sector.
In May, the business was on its way to report operating income profitability this year. During the March quarter, it maintains a flat number in its workforce after the sequential drop in headcount.
Moreover, the recent cuts equate to 35.00% of the recruiting team of Uber, according to analysts. The firm decreased its staff count by 17.00% at the beginning of the pandemic in 2020. By comparison, its implemented cuts are lower than its rival, Lyft.
Furthermore, Lyft’s CEO David Risher slashed 26.00% of its workforce in April and around 700 employees late last year. Also, it was difficult for them to protect margins to earn a higher market share than Uber.
The transportation conglomerate’s effort to cut down its recruitment sector matches its broader cost-reduction strategy. By downsizing and optimizing, it aims to improve financial performance and strengthen its position in the market.
Bolt, Uber Rival, to Offer Food Deliveries
A European company called Bolt will begin offering food deliveries via robots supplied by Starship Technologies. The Uber rival will start their deliveries in Tallinn, Estonia.
Starship’s suitcase-sized robots would initially roll out later in the year. According to CEO Markus Villig, they are working on providing well-rounded methods for making transportation more sustainable.
Bolt, a highly valued tech company, has a valuation of $8.40 billion. It is known for challenging Uber in significant international markets.
In addition, the firm broadened into multiple other lines of business, such as online food and grocery delivery and e-scooters.
Customers can order food online and have it delivered by robots with just a few phone taps.