Uber (NYSE:) plans to slash costs and “react accordingly” to the unexpected change in investor sentiment, the company’s CEO Dara Khosrowshahi told employees in an internal memo.

“After earnings, I spent several days meeting investors in New York and Boston,” Khosrowshahi was quoted by CNBC.

“It’s clear that the market is experiencing a seismic shift and we need to react accordingly.”

Technology market reversed from the highs of the Covid-19 pandemic. It tumbled for the fifth week straight, its longest losing streak in a single week in ten years.

In response to the drastically different investor sentiment, Uber intends to cut costs relating to marketing and incentives and will “treat hiring as a privilege,” added Khosrowshahi.

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

“We will be even more hardcore about costs across the board.”

Uber has become the latest tech company that is slowing down its pace in increasing headcount. Facebook (NASDAQ 🙂 last week announced it will not add or stop mid-level roles in future. Robinhood (NASDAQ 🙂 has slashed approximately 9% of its workforce.

Uber’s boss indicated that Uber will be attempting to earn a profit instead of on adjusted earnings before interest taxes, depreciation and amortization (EBITDA).

Uber’s revenue increased more than twice to $6.9 Billion due to an increase in ridership as the coronavirus restrictions around the globe were lifted. Uber also suffered a loss of $5.9 billion in quarter due to sharp drops in its equity investments.

Premarket Monday saw Uber share prices fall by nearly 3%

By Senad Karaahmetovic