Uber announced that it will cut back on hiring, seeing the process as a "privilege" in an attempt to focus on profitability, The Wall Street Journal reported May 9.
This is in the wake of massive losses on investments for the company despite a surge in users. The company did not mention what this means for its health department, which has grown in the past few years.
Here are five things to know about Uber's new strategy:
- In an email, Uber CEO Dara Khosrowshahi said the company will cut back on both marketing and hiring to improve profitability, the Journal said.
- He said that investors are less tolerant of companies that increase their market share at the expense of profits, according to the Journal.
- In the first quarter of the year, Uber's net loss increased to $5.93 billion from $108 million a year earlier.
- The company is hoping to be cash flow positive by the end of this year, meaning it would be the first time the underlying business turns a profit according to the Journal.
- In its first quarter financial report, the company saw a net revenue of $6.9 billion and a gross bookings increase of 35 percent with gross mobility bookings worth $10.7 billion and gross delivery bookings worth $13.9 billion.