The ride-hailing company becomes the latest to rein in costs
to have a lean investment model, after Facebook-owner Meta said last week it
would slow down the growth of its workforce.
Khosrowshahi said Uber's change in strategy was a necessary
response to the "seismic shift" in investor sentiment, according to
the CNBC report.
"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," the report quoted Khosrowshahi as
saying.
Uber said last week its driver base is at a post-pandemic
high, and the company expects this to continue without significant incentive
investments, a sharp contrast to rival Lyft which has said it needs to spend
more for labor.
The company will now focus on achieving profitability on a
free cash flow basis, rather than adjusted earnings before interest, taxes,
depreciation, and amortization, according to the CNBC report.
The ride hailing giant expects to generate "meaningful
positive cash flows" for the full year, according to its latest earnings
report.
Khosrowshahi added in his letter that Uber's food delivery
and freight businesses need to grow faster, the CNBC report added.
Uber did not immediately respond to a Reuters' request for
comment. © Reuters