Uber Technologies will reduce recruitment and reduce costs in its marketing and promotional activities, CNBC reported on Monday, citing a letter from Chief Executive Officer Dara Khosrowshahi. after Meta Platforms, the owner of Facebook, said last week it would slow down the growth of its staff. Khosrowshahi said the change in Uber’s strategy is a necessary response to “earthquake change” in the sentiments of investors.
“The most effective marketing and fundraising strategy will be phased out. We will consider hiring as a privilege and deliberately determine when and where to increase the population,” the report quoted Khosrowshahi as saying.
Uber said last week its drivers base was at an all-time high after the epidemic, and the company expects this to continue without significant investment, which is very different from its rival Lyft who said it needed to spend more money to operate. The company will now focus on making a profit on the basis of free cash flow, instead of pre-interest rate adjustments, taxes, depreciation, and cost reductions.The ride giant expects to generate “lucrative profits” throughout the year, according to its latest earnings report.
