Uber Freight has laid off 150 workers, or about 3% of the phase’s complete head rely.

The layoffs have an effect on the division’s digital brokerage workforce, Uber Freight CEO Lior Ron mentioned Monday in a message seen by CNBC. They’re the primary layoffs since 2020, within the early weeks of Covid lockdowns.

Uber launched its freight unit in 2017 with a perception that trucking firms and laden items might be matched utilizing the identical idea that underpinned the corporate’s ride-hailing expertise. The unit booked $1.8 billion in income for the third quarter of 2022, up 336% 12 months over 12 months.

“As , the logistics market is at present dealing with quite a lot of headwinds which has impacted our buyer base in addition to the general business,” Ron advised workers. “We accelerated hiring final 12 months inside sure areas of our Brokerage enterprise, planning for a distinct financial actuality, however the volumes didn’t materialize as anticipated.”

Uber CEO Dara Khosrowshahi mentioned final week on the World Financial Discussion board in Davos that he is not planning companywide layoffs.

The cuts observe far deeper tech layoffs at Alphabet, Meta, Amazon, Microsoft and Twitter. In November, supply service DoorDash laid off 1,250 employees, or 6% of its head rely, weeks after ride-hailing platform Lyft reduce 13% of its head rely.

Laid-off workers “might be prolonged departure packages and assist that features severance, prolonged healthcare and 2022 bonus cost, outplacement and profession assist, and if relevant, immigration companies,” Ron mentioned.

Uber releases its 2022 full-year earnings on Feb. 8.