Uber Fires 200 Recruiters... Draws Line Against Future Large-Scale Layoffs

by Cho Seulkina

Published 22 Jun.2023 04:54(KST)

Uber, the world's largest ride-sharing service provider, has laid off 200 recruiters as a cost-cutting measure in preparation for an economic slowdown.

The Wall Street Journal (WSJ) reported on the 21st (local time) that Uber disclosed this layoff plan through a memo sent to its employees. The scale of this layoff accounts for about 35% of Uber's entire HR team, but it is less than 1% of the company's total workforce.

Nikki Krishnamurthy, Uber's Chief Human Resources Officer, explained the background, saying, "In a situation of low attrition, we need to adjust the size of the talent acquisition team to align with our hiring strategy and prepare the business for sustained success." However, she also confirmed that Uber does not plan large-scale layoffs or restructuring like those previously carried out by competitors or big tech companies.

[Image source=Reuters Yonhap News]

Previously, Uber conducted layoffs involving hundreds of employees, mainly in its freight division and overseas food delivery sector. WSJ reported that including the recruiters laid off this time, Uber's total layoffs this year amount to less than 3% of its entire workforce. Uber has approximately 32,000 employees worldwide, and Uber drivers are not classified as employees.

Instead, Uber plans to be more cautious with future new hires in preparation for the economic slowdown. Earlier, Dara Khosrowshahi, Uber's Chief Executive Officer (CEO), stated, "We will maintain the number of employees over the next few quarters." This is to maintain an appropriate workforce.

Uber's competitors have recently pursued large-scale layoffs. Ride-sharing service provider Lyft has laid off more than 30% of its employees over the past few months. Food delivery competitor DoorDash cut 6% of its workforce at the end of last year, and Grubhub announced earlier this month that it will reduce its staff by 15%.