Uber, the global cab-hailing service, announced on Wednesday that it will be reducing its workforce by 200 employees in its recruitment division. The layoffs account for less than 1 per cent of Uber’s total global workforce of 32,700. This move follows the company’s earlier decision to lay off 150 employees in its freight services division earlier this year.
The Wall Street Journal reported that the latest cuts affect 35 per cent of Uber’s recruiting team. However, it is unclear whether these layoffs impact Uber employees in India.
Uber has been implementing various cost-cutting measures in recent years. The company reduced its staff count by 17 per cent at the beginning of the COVID-19 pandemic in mid-2020. Despite facing stiff competition from its chief rival Lyft, Uber has undertaken smaller cuts in recent months. Lyft, under new CEO David Risher, made more substantial reductions, laying off approximately 26 per cent of its workforce in April and around 700 employees late last year in an effort to protect margins and gain market share from Uber.
While Uber plans to maintain a flat employee count throughout the year, the company aims to streamline costs as it works toward achieving operating income profitability in 2023. Uber reported that its headcount fell sequentially in the first quarter of this year.
Meanwhile, in India, Uber has introduced new features for riders. Recently, the company launched an Audio Seatbelt Reminder functionality to promote rider safety. When a passenger books a trip and enters the vehicle, the driver’s phone will send an audio prompt reminding them to fasten their seatbelts. Simultaneously, the rider receives a notification on their phone from the Uber app, encouraging them to do the same before the trip commences.
Sooraj Nair, Head of Safety Operations for Uber India and South Asia, said, “We are delighted to bring the Audio Seatbelt Reminder to Hyderabad. We believe that this new feature will be an effective way to encourage riders to wear their seat belts, and we are excited to see the positive impact it will have on road safety in Hyderabad.”