Uber Freight has laid off 150 employees, which is about 3% of the segment’s total head count. The unit marked $1.8 billion in revenue for 2022’s third quarter, up 336% year over year.
Uber Freight CEO Lior Ron said Monday that the layoffs affect the digital brokerage team of the division. These are the first layoffs since 2020, which were in the early weeks of the Covid lockdowns.
Uber had launched its freight unit in 2017 with the notion that trucking companies and laden goods can be matched using the same concept that underpinned the company’s ride-hailing technology.
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“As you know, the logistics market is currently facing a number of headwinds which has impacted our customer base as well as the overall industry,” a spokesperson told the employees at Uber Freight.
“We accelerated hiring last year within certain areas of our Brokerage business, planning for a different economic reality, but the volumes did not materialize as expected,” he added.
Dara Khosrowshahi, Uber CEO, said last week at the World Economic Forum (WEF) in Davos that he is not planning company-wide layoffs.