Following a surge in hiring last year, online freight broker Uber Freight has laid off scores of employees. According to CNBC, around 150 employees, or 3% of Uber Freight’s entire staff, were recently laid off. According to the article, all of the laid-off employees were from the company’s digital freight brokerage section.
The cause for the layoffs, according to company CEO Lior Ron, is a volatile freight market.
“As you are aware, the logistics market is now facing a variety of challenges, which has impacted both our customer base and the wider industry. We increased employment in key areas of our Brokerage business last year in preparation for a different economic reality, but the volumes did not materialize as predicted,” Ron explained.
The company says that laid off workers will receive severance pay, extended health care, 2022 bonus payment, and career support services.
Uber Freight was founded in 2017 and provides a digital platform connecting shippers to motor carriers.