Uber Freight is cutting 150 jobs, about 3% of the unit’s workforce

above Freight laid off 150 employees, about 3% of the segment’s total headcount.

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

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Uber launched its freight unit in 2017 in the belief that trucking and loaded goods could be matched using the same concept that underlies the company’s ride-hailing technology. The unit posted revenue of $1.8 billion for the third quarter of 2022, up 336% year over year.

“As you know, the logistics market is currently facing a number of headwinds that have impacted both our customer base and the industry as a whole,” Ron told employees. “We accelerated hiring in certain areas of our brokerage business last year to plan for a different economic reality, but volumes have not materialized as anticipated.”

Uber CEO Dara Khosrowshahi said at the World Economic Forum in Davos last week that he was not planning any company-wide layoffs.

The cuts follow far deeper tech layoffs alphabet, Meta, Amazon, Microsoft and Twitter. In November, delivery service DoorDash laid off 1,250 employees, or 6% of its workforce, weeks after ride-sharing platform Lyft shed 13% of its workforce.

Laid-off employees “will receive expanded severance packages and support that include severance pay, expanded healthcare and bonus payments for 2022, outplacement and career support, and immigration services where appropriate,” Ron said.

Uber will release its full-year 2022 results on February 2. 8th.

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