Uber, Meta to reduce hiring as stocks slide

Some tech companies are tightening their belts as they adjust to ongoing financial turbulence, with Uber and Meta both looking to reduce expenses and hiring. Uber CEO Dara Khosrowshahi told employees in an internal email that the ride-hailing service is going to try harder to stop losing so much money. Khosrowshahi's email, …

[martinusher]

Basing investment decisions on stock price leads to bad outcomes

Investment is a long term thing but the way the public corporations get leveraged means that there's little room for long term investment -- anything that's spent on development has to pay off and it has to pay off in terms of meeting or beating the RoI that you could get from, say, investing in real estate. This is what the reality of financialization means to business and the result is the gradual strangulation of the industry as it seeks to maintain profits while cutting costs (hence the fashion for outsourcing).

It never ends well. I remember a colleague talking about a local company, quite a large one, in terms that it 'breathed engineers' -- not a good place to work. Its facility is now a bank's office.

[DS999]

Re: Basing investment decisions on stock price leads to bad outcomes

Who says they are doing it because of their stock price drops? Facebook's stock price plunge is because of a revenue drop, which is a damn good reason to reduce hiring. Uber isn't seeing a revenue fall but they have basically existed since day one via borrowing which becomes dicier as interest rates rise, which is the main reason their stock price has plunged and also requires some belt tightening.

It isn't like either company has been running lean and hiring the bare minimum of people. They've hired and invested like drunken pirates who just hit port after receiving their share of a Spanish galleon's treasure, so a pause isn't exactly going to leave them under resourced and unable to compete.

[SnOOpy168]

Saw a few youngling's disappointed post in LinkedIn about having accepted and moved for a Meta position, only to be told that they're no longer needed. I hoped their expertise will land them a job soon.

"In April, Meta reportedly froze the hiring of entry-level and mid-level engineers, with limited exceptions, and has now expanded its hiring limitations."

[A Non e-mouse]

How can you loose $10b in one year? And who keeps on bank rolling Uber?

Either very rich people are very stupid or Uber, Meta, etc are massive money laundering operations.

[b0llchit]

Not once, not twice, but every year we see those big billion numbers loss. It is probably a stock-tax-stock-tax scheme where you let the taxman pay your losses and then some.

Big sigh. You get a lot of money if you can prove you do not need any money.

[Yet Another Anonymous coward]

>? And who keeps on bank rolling Uber?

People who believe that once Uber has replaced taxis everywhere on the planet and public transport in most rural areas they will be able to turn the screws employ pricing power and make money

Or idiots with other people's money

[Filippo]

Maybe, just maybe, getting ludicrous amounts of money to finance dubious "disruptive" business models, where it's not at all clear where the money would be coming from otherwise, or which are based on exploits in workers' or consumers' rights that governments are eventually going to pay attention to, is just getting harder. I don't see that as a bad thing.

[AMBxx]

Those of us of a certain age are getting a very strong feeling of deja vu.

At some point, a company has to start thinking about profit and not just market share or how disruptive they are.

[chivo243]

Meta Freezing hiring?

Facebook parent Meta on Wednesday announced a major expansion of its DeKalb data center, currently under construction.

The new plans call for an increase in the number of buildings on the campus located on the south side of the city from two to five, more than doubling the data center's square footage. Meta says the number of people permanently employed in operations at the center will also double, from a previously announced 100 jobs to 200. Another 1,200 workers are currently working to construct the center, now expected to be finished in 2023.

Northern Public Radio

Published April 27, 2022 at 4:31 PM CDT

https://www.northernpublicradio.org/2022-04-27/facebook-parent-meta-announces-major-expansion-of-its-dekalb-data-center

https://www.chicagojournal.com/facebook-parent-meta-expands-illinois-data-center-in-dekalb/

I think they underestimate how many people will be needed there...

[Dinanziame]

Re: Meta Freezing hiring?

Data centers typically don't require more than a few dozen people to change hardware when it breaks.

[Anonymous Coward]

the need to reassure investors

"investors" ? Or plain old sharks ?

Investors actually invest - they aim to see a company grow and benefit all.

The current crop of dollar-spaffers couldn't give a shit about the company, it's employees and (especially not) it's customers as long as they get their economics-defying ROI based on other peoples greed.

[fandom]

Re: the need to reassure investors

In Uber's case I think the technical term to describe them is 'rubes'

[Roger Kynaston]

Imagine working for an antisocial

I know we shouldn't be overly proud and good work can be done in evil corps but the idea that my little scripts keep the Zuck afloat would leave a very sour taste in my mouth.

[Anonymous Coward]

Re: Imagine working for an antisocial

I once had to write code to help McDonalds do the considerable analysis required to determine where to open new stores. I hated myself for doing it. It was also tempting to hard code my general postcode area as no-go area.

[Howard Sway]

Metastable equilibrium

Oh no, nobody's getting taxis any more because they're spending their lives at home in the metaverse - sell Uber, buy Meta!

Oh wait, now everyone's discovered that the metaverse is shit, and they want real life again - sell Meta, buy Uber!

Metaverse 2.0 is out, sell Uber, buy Meta!

repeat ad nauseum.