Uber pauses hiring of new software engineers to cut costs

Uber Technologies has put a pause on hiring new software engineers and product managers across the U.S. and Canada, Bloomberg reported.
Uber Eats network

The San Francisco-based company said it exceeded hiring goals for new software engineers and product managers. The freeze will not include workers in Uber’s freight or autonomous vehicles businesses.

Thuan Pham is chief technology officer at Uber.

“We are continuing to aggressively hire talent, including many engineers, all over the world,” the spokesman said. “We temporarily hit pause on some teams while we ensure we’re being both effective and efficient in staffing against our strategic priorities.”

Last week, Uber said it was cutting 400 marketing jobs around the world. The moves suggest Uber is being more cautious about headcount after years of rapid growth.

Uber posted a $5.24 billion net loss, its biggest ever, during the second quarter of 2019.

The company said a price war in the United States was easing and that an important measure of profitability topped its target, but slowing revenue growth raised questions about Uber’s ability to expand and fend off competition, Reuters reported.

Uber’s net loss, widening from a loss of $878 million a year earlier, included $3.9 billion of stock-based compensation expenses related to its IPO this year and nearly $300 million in driver appreciation related to the stock sale.

Uber reported that revenue growth slowed to 14 percent to $3.2 billion. The company’s core business, ride-hailing, grew revenue only 2 percent to $2.3 billion. Food delivery Uber Eats grew 72 percent to $595 million.

Uber is keeping less money per car ride. The amount passengers spent on trips rose 20 percent while the amount Uber kept after paying its drivers increased just 4 percent.

Uber’s costs rose 147 percent to $8.65 billion in the quarter, including a rise in spending for research and development.

Uber’s gross bookings for the year would be $65 billion to $67 billion.

Uber said its monthly active users rose to 99 million globally, from 93 million at the end of the first quarter and 76 million a year earlier.