U.S. Ridesharing Tech Company, Uber Stops Hiring After Recording a $5.2 Billion Loss

Uber has said that it will not be hiring staff for its technical and engineering department this year. The decision not to hire staff anymore in 2019 was announced after the company reported a huge quarterly loss last week. Uber said that the hiring freeze was restricted to the US technical and engineering department. The ridesharing company also said that it wasn’t hiring anymore because it had met its hiring goals for the year.

Uber Stops Hiring

According to an Uber spokesperson who spoke to Bloomberg, the company had already exceeded the number of engineers it planned to hire in 2019. Its software engineering and product management teams had more staff than needed. Uber has also paused the activities of some of its teams pending when they resolve issues of staffing effectiveness and efficiency.

The New York Times last month, reported that 400 people in Uber’s marketing team were laid off. Although the ridesharing company did not make the lay off the public, New York Times said it got to know of the mass sack after it got hold of an internal email which stated that the marketing team had grown too large. At the end of 2018, Uber reportedly had more than 22,000 staff on their payroll with about 700 offices around the world.

Speaking further on the hiring freeze, Uber’s spokesperson said that the company will continue to hire talent including engineers worldwide. This indicates that the decision not to hire engineers, for now, does not affect other countries. The U.S is the only country to have met its hiring goals for 2019.

Uber’s quarterly loss of $5.2bn is the largest that the company has recorded since it began operations. Earlier in 2019, the company issued an IPO which was not well received by Wall Street. While Uber failed to live up to expectations, the rival ridesharing company Lyft reported positive figures on Wednesday. Both companies rely on subsidies to attract customers and have invested heavily in self-driving technology and food delivery.

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