Uber’s CEO says slashing 3,300 employees may lower fares

Uber’s chief executive, Dara Khosrowshahi, said the company may lower ride prices after cutting around 10 percent, or 3,300 employees, earlier this month, Business Insider reported.

Khosrowshahi said at Goldman Sachs’ Communacopia + Technology Conference on Thursday that the layoff is one of Uber’s cost-saving plans to lower fares.

“We are going to take the savings there and essentially reinvest it back in the business, lowering prices, improving selection, and continuing to invest in our growth program,” Khosrowshahi said, adding that Uber plans to use the cost saved from insurance to lower prices and help keep riders using Uber's app.

Uber’s second-quarter financial results outperformed market expectations, with revenue rising 12 percent to US$14.19 billion, while adjusted earnings per share rose 28.5 percent to US$0.81. Khosrowshahi has also added US$10 million in Uber stock to his holdings, according to an SEC filing the company disclosed on Thursday.

Khosrowshahi said Uber picked the right time to lay off employees, as it was in "a position of strength versus weakness." 
 

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