Amid some sort of sledding for tech stocks in general, Uber in particular is gearing up.
Ride-share Big Dog informed employees on Sunday that cuts in marketing and driver incentives were coming.
It also indicated that hiring would slow – or be considered a “privilege” from now on.
“It is clear that the market is experiencing a seismic turnaround and we need to react accordingly,” Uber’s chief executive, Dara Khosrowshahi, said in an email obtained by CNBC.
It’s clearly an acknowledgment that tech investors are almost exclusively no longer interested in growth. They’re also now looking forward to seeing some good old-fashioned profits to boot.
Uber, like many high-flying tech companies, is positioning itself as a company in Wall Street, and has used various growth metrics to back it up.
But profits have been a moving target — and Uber’s latest cuts reflect a growing awareness that it needs to shore up its finances if it is to make a compelling case for investors.
“We have to make sure our unit economics works before it gets bigger,” Khosrowshahi wrote in his email. “At least efficient marketing and incentive spending will be pulled back.”
He said hiring a good deal would make it pickier.
“We will treat hiring as a privilege and will deliberate about when and where we add headcount,” Khosrowshahi said. “We will be even more fanatical about cost across the board.”
Whether new employees are considered a “privilege” in Uber’s team remains to be seen. Such things are usually put on the employer to make the employees feel that they are part of something special.
The company’s shares are down more than 40% so far this year, and they’re down again on Monday.
suggest an improvement