Uber CEO says layoff savings will lower ride prices
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Uber CEO Dara Khosrowshahi said the company will use savings from cutting about 3,300 corporate jobs to lower ride prices. He also said savings from lower insurance costs will be passed on to riders. The announcement came during a presentation at the Goldman Sachs Communacopia + Technology Conference on Thursday.
Key Facts
- Uber cut about 10% of its corporate roles, or about 3,300 people, last week.
- CEO Dara Khosrowshahi said savings from the layoffs and lower insurance costs will be reinvested to lower ride prices.
- Uber's stock rose about 2% on Thursday after an SEC filing showed Khosrowshahi added about $10 million in Uber stock to his holdings.
Price Reduction Plans
Uber will use savings from laying off 10% of its corporate workforce, or about 3,300 people, to lower ride prices. CEO Dara Khosrowshahi said the company will also apply savings from lower insurance costs to reduce prices. The price cuts are intended to keep riders using Uber's app, Khosrowshahi said during a presentation at the Goldman Sachs Communacopia + Technology Conference on Thursday.
Layoff Context
Uber announced the job cuts earlier this month, eliminating about 3,300 corporate roles. Khosrowshahi said Uber made the layoffs from a position of strength, not weakness. The layoffs followed quarterly earnings reports that largely exceeded analysts' expectations.
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