Over 100 Uber Freight employees were laid off in late January. The cuts come after CEO Dara Khosrowshahi reiterated that Uber would not execute companywide layoffs.

Uber Freight had to let go of 150 employees, or 3% of the unit’s total headcount. The layoffs impacted the division’s digital brokerage team.

“As you know, the logistics market is currently facing a number of headwinds which has impacted our customer base as well as the overall industry,” Uber Freight CEO Lior Ron told employees, according to CNBC. “We accelerated hiring last year within certain areas of our Brokerage business, planning for a different economic reality, but the volumes did not materialize as expected.” 

The move was in contrast to what Khosrowshahi said at the World Economic Forum in Davos, that he isn’t planning companywide layoffs. The laid-off Uber Freight employees are the first batch of individuals who were let go since 2020, in the early weeks of COVID-19 lockdowns.

Ron added that those employees "will be extended departure packages and support that includes severance, extended health care and 2022 bonus payment, outplacement and career support, and if applicable, immigration services.” 

Uber launched its transportation and logistics solutions unit in 2017, believing that trucking companies and laden goods could be matched using the same concept that bolstered the company’s ride-hailing technology. It booked $1.8 billion in revenue for the third quarter of 2022, up 336% year over year.