Uber promises belt-tightening as shares tumble 11 percent
SAN FRANCISCO (KPIX) -- Uber's shares closed down more than 11 percent on Monday. The ride-sharing giant is scaling back on hiring and cutting back on spending to address a shift in investor sentiment.
Uber says it will be slashing marketing and driver incentives.
This comes after the San Francisco-based company's shares are down more than 40 percent, so far, this year.
In an email sent to employees Sunday and obtained by CNBC, Dara Khosrowshahi said the ride-sharing giant would be cutting costs where it can.
"In times of uncertainty, investors look for safety," he wrote. "Channeling Jerry Maguire, we need to show them the money."
Khosrowshahi said there has "seismic shift" in investor sentiment as the economy teeters on the front edge of a recession. After the company's recent earnings call, he spent time with key investors.
"After earnings, I spent several days meeting investors in New York and Boston," Khosrowshahi wrote in the email. "It's clear that the market is experiencing a seismic shift and we need to react accordingly."
That includes where and when the firm adds staff.
"We will treat hiring as a privilege and be deliberate about when and where we add headcount," he wrote. "We will be even more hardcore about costs across the board."
The Nasdaq Composite continued its tumble on Monday, dropping about 4.3%. Uber shares dropped in value by 11.5 percent to $23.05 well off its 52-week high of $52.36.