Online freight broker Uber Freight has laid off dozens of workers after accelerating hiring last year.
CNBC confirms that approximately 150 workers, or 3% of Uber Freight’s total workforce, were recently let go. All of the laid off workers were part of the company’s digital freight brokerage division, according to the report.
Company CEO Lior Ron told workers that a fraught freight market is the reason for the layoffs.
“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. 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” Ron said.
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.