Logistics leader Uber Freight confirmed Tuesday that it was forced to cut a number of jobs in order to align with its “continued commitment to drive sustainable growth.”
A source familiar with the layoffs said between 40 and 50 jobs were cut Monday. However, Chicago-based Uber Freight (NYSE: UBER) declined to disclose the exact number of employees affected or the percentage of the company’s workforce that was part of the layoffs.
“We made a strategic workforce adjustment aligned with our continued commitment to drive sustainable growth. Regrettably, this means a small reduction in force,” an Uber spokesperson said in a statement to FreightWaves. “This decision, not made lightly, optimizes the team to enhance operational efficiency and long-term success.”
One former employee told FreightWaves that he and others received their separation agreements from human resources via email around noon CST on Monday, hours before they were laid off via one-on-one Zoom calls.
“HR screwed up and sent out separation agreements and everyone was in panic mode, but the company kept telling us it was just an error in the system,” the source, who didn’t want to be identified for fear of retaliation, told FreightWaves. “Hours later, we received calendar invites to join a Zoom call about 10 minutes before we were let go.”
Uber Freight underwent a series of layoffs in 2023, including slashing around 150 jobs in its digital brokerage arm in January and as many as 50 employees in July.
In October, news that Uber Freight’s largest competitor, Seattle-based Convoy, was ceasing operations because of the “massive freight recession” rattled the digital freight brokerage industry.
One Ex-Uber Freight employee said this is the first round of layoffs that have impacted employees from legacy Transplace, which Uber Freight acquired in 2021.
“While I was more in tune with Uber Freight people, I do know some Transplace employees’ positions were impacted by the layoffs as well,” the source, who didn’t want to be identified, told FreightWaves.
The Uber Freight spokesperson declined to comment further about the layoffs Monday or confirm details about the former employees’ severance packages.
“We deeply appreciate the contributions of all team members and are providing support for those affected,” according to the company’s statement. “Our focus remains on delivering excellence to our customers and creating sustained value for our stakeholders.”
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Freight Zippy
Further proof that Brokers are the problem.
Uber just pushed rates lower, they simply pushed any savings onto carriers.
It had to end, now they are a Broker with few carriers.
Best way to move freight is direct with carriers are no Broker can be trusted.