Uber CEO says layoffs will fund lower ride fares and service upgrades
Uber plans to use savings from cutting about 10% of its corporate staff to reduce ride prices and improve its offering.
During a presentation at the Goldman Sachs Communacopia + Technology Conference, Dara Khosrowshahi explained that Uber’s recent layoff of about 10% of its corporate workforce—approximately 3,300 employees—will generate cost savings that the firm will channel back into its core services. Those savings are earmarked for lower ride prices, a broader selection of ride options, and ongoing growth programs. In addition, the company will apply reduced insurance costs toward fare reductions to retain riders.
Uber has been outperforming analyst forecasts in recent quarterly reports, and its shares climbed roughly 2% after an SEC filing showed the CEO purchased about $10 million of Uber stock. Khosrowshahi said the timing of the cuts reflects Uber’s strong position and a refusal to delay action.
Why it matters
Lower fares could make Uber more competitive while the layoffs signal a shift in how the company allocates resources.
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