STORY: Uber CEO Dara Khosrowshahi told employees that the ride-hailing giant will scale back hiring and cut back on spending to address a "seismic shift" in investor sentiment.
That's according to a report from CNBC on Monday, citing a letter sent to employees late Sunday, in which Khosrowshahi said it was "clear that the market is experiencing a seismic shift and we need to react accordingly,” adding that "marketing and incentive spend will be pulled back" and that Uber will "be deliberate about when and where we add headcount."
Uber is the latest to rein in spending, after Facebook-owner Meta Platforms said last week it too would slow down the growth of its workforce.
It was just last week that rival Lyft said it needed to spend more to attract drivers but, in a sharp contrast, Uber said its driver base is strong and expects that strength to continue without significant incentive investments.
Uber did not immediately respond to a Reuters' request for comment.
Shares of Uber plunged with the rest of the stock market on Monday, falling as much as nearly 8% in morning trading.
The stock is now down nearly 50% from its recent high hit in January.