Uber CEO, Dara Khosrowshasi, tells employees that hiring will be considered a "privilege" as the company plans to cut down on spending.
The Uber top exec also disclosed that the ride-hailing firm plans to focus on making it a leaner business.
NEW YORK, NEW YORK - SEPTEMBER 24: Dara Khosrowshahi, CEO, UBER, speaks onstage during the 2019 Concordia Annual Summit - Day 2 at Grand Hyatt New York on September 24, 2019 in New York City.
Uber CEO Khosrowshahi on Hiring
As per a news story by CNBC, the CEO of the delivery and ride-hailing app, Khosrowshahi, sent an email to its employees about the massive shift that Uber is planning to implement.
Thankfully, the news outlet obtained a copy of the internal memo to its employees, saying that Uber plans to cut its spending.
The Uber CEO said that the tech giant is taking steps to address the recent shift in the overall economic sentiment, wherein stocks of tech firms started to plunge dramatically.
The sharp decline comes after these companies experienced staggering high during the height of the COVID-19 pandemic, which forced millions of folks to stay in the confines of their homes.
It is to note that the delivery service of Uber highly benefited from the safety measures that were implemented when the cases of coronavirus infection were still consistently on the rise.
Uber Cost Cutting
But this time around, it appears that the tech firms have generally reached their peak.
The Uber boss said that the giant ride-hailing app now plans to cut down on its marketing and incentive spending. Not to mention that the tech exec stated that hiring should now be considered a "privilege."
CARDIFF, WALES - FEBRUARY 19: A close-up of an Uber sticker on the side of a car on February 19, 2021 in Cardiff, Wales.
The Uber exec wrote in an internal memo that both "least efficient" incentives and marketing expenses will be cut down.
On top of that, Khosrowshahi also told its workforce that Uber will treat hiring as a privilege." The Uber boss also shared that he now wants to be more deliberate about adding more employees to his tech firm.
The Uber CEO justified his plans in the internal email, saying that investors are currently looking for safety. Therefore, the giant ride-hailing platform should start showing them that the firm is making money.
Read Also: Uber Introduces Uber Explore: Which Cities Can Book Restaurants, Live Events Tickets Via the App?
Tech Giants and Hiring Slow Down
According to a recent report by Business Insider, it is not the first instance that the tech firm is scaling down its hiring.
In fact, the parent firm of Facebook, Meta, also announced that it is slowing down on hiring new employees as part of its solution for its dismal revenue growth.
On the other hand, another tech firm, the stock trading platform Robinhood, also revealed that it has already decided to let go of about 9% of its overall workforce.
It turns out that Uber is the latest tech giant to slow down on hiring, dubbing it now a "privilege."
Related Article: Uber, Lyft to Drop Mask Requirement - Will It be for Both Drivers and Passengers?
