Uber CEO Dara Khosrowshahi said in a recent email to staff that the company would be “hard-core” on cutting marketing and incentive spending and would treat hiring new employees as a “privilege.” “.
CNBC reports that, according to Uber CEO Dara Khosrowshahi, the company will cut spending and focus on relief due to a “seismic shift” in investor sentiment. The news came in an email to employees obtained by CNBC.
Khosrowshahi said in the email sent on Sunday: “After the earnings, I spent several days meeting with investors in New York and Boston. It is clear that the market is experiencing a seismic shift and we need to respond accordingly. .
Tech stocks have taken a hit after hitting all-time highs during the coronavirus pandemic as investors fret over the prospect of a long-running bull market ending. The Nasdaq Composite posted its fifth consecutive week of declines last week, marking its longest losing streak since 2012. Shares of Uber competitor Lyft fell 30% in a day following bleak forecasts caused by gasoline prices and other market headwinds.
In an attempt to address this issue, Uber will reduce marketing and incentive spend. “We need to make sure our unit economy works before we get big,” Khosrowshahi said. “The least effective marketing and incentive spend will be removed.”
He added: “We will treat hiring as a privilege and we will decide when and where we add staff. We will be even more intransigent on costs at all levels. »
Uber shares fell more than 6% in intraday trading on Monday, as the company’s shares have fallen more than 40% year-to-date. Khosrowshahi said the company will now focus on profitability based on free cash flow rather than adjusted earnings before interest, tax, depreciation and amortization.
“We’ve made a ton of progress on profitability, setting a target of $5 billion in adjusted EBITDA in 2024, but the targets have changed,” Khosrowshahi said. “Now it’s about free cash flow. We can (and must) get there quickly.
Uber is well known for its awakening. In a recent case, the company pledged to support its drivers in the face of Texas abortion law.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues. Follow him on Twitter @LucasNolan or contact by secure email at firstname.lastname@example.org