January 31, 2023

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Uber Freight has laid off 150 employees, or about 3% of the segment’s total workforce.

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The layoffs affect the division’s digital brokerage team, Uber Freight CEO Lior Ron said Monday in a message seen by CNBC. These are the first layoffs since 2020 in the early weeks of the Covid lockdown.

Uber launched its freight unit in 2017 with the belief that matching trucking companies and loaded goods could be done using the same concepts that underpin the company’s ride-hailing technology. The unit booked $1.8 billion in revenue for the third quarter of 2022, up 336% year-over-year.

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“As you know, the logistics market is currently facing a number of disruptions that have affected our customer base as well as the industry as a whole,” Ron told employees. “We accelerated hiring in certain areas of our brokerage business last year, planning for a different economic reality, but volumes did not materialize as expected.”

Uber CEO Dara Khosrowshahi said Last week at the World Economic Forum in Davos that it is not planning companywide layoffs.

The cuts follow very deep tech layoffs Alphabet, meta, Amazon, Microsoft and Twitter. In November, delivery service DoorDash laid off 1,250 workers, or 6% of its workforce, weeks after ride-hailing platform Lyft cut 13% of its workforce.

“Layed-off employees will be given departure packages and support, including severance, extended healthcare and 2022 bonus payments, outplacement and career support and, if applicable, immigration services,” Ron said.

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Uber released its 2022 full-year earnings on February 8.