Uber stocks is getting hammered and now the CEO wants to cut cost that may affect hiring

Uber released its earnings report a while ago and the stock got hammered really bad, the stock is down 16.55% in the past 5 days alone and is also expected to trade down today.  With Uber stock trading at $26.07 per share, that is over 50% from its 52-weeks high of $52.36 per share.

Uber stock is bleeding money and the CEO Dara Khosrowshahi has come out to say that Uber will cut costs and it affect hiring, he then told employees to treat hiring as a privilege.

The company plans to cut spending and become a much leaner business model. “After earnings, I spent several days meeting investors in New York and Boston,” Khosrowshahi said in the email, which was sent out late Sunday. “It’s clear that the market is experiencing a seismic shift and we need to react accordingly.”

“We have to make sure our unit economics work before we go big,” the Uber boss wrote. “The least efficient marketing and incentive spend will be pulled back.”

“We will treat hiring as a privilege and be deliberate about when and where we add headcount,” he added. “We will be even more hardcore about costs across the board.”

Uber is a ride-sharing company that went public on May 10^th, 2019. The stock was expected to become a trillion-dollar company in the future but it is suffering right now and it’s only worth $50.97 billion in market cap.