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It is through an email that Khosrowshahi (CEO of Uber) has announced the measures that the company will be implementing in this market, internally it has turned the employment contract into a privilege.
The measure of announcing that the employee contract will be a privilege is part of the situation that is coming for many companies today, it is a very clear symptom of the key situation in the market.
Uber and the warnings that managers such as its CEO have made, warn of the situation that exists in the market and especially in the development of travel apps.
Uber has prepared for the worst and with an email, the CEO of the company has given the clues of what is to come, even warning that receiving a contract in the company is a privilege.
The series of keys that Dara Khosrowshahi himself has given to employees is one more chapter in the controversy that has overshadowed the application throughout its history as a businessbut now launches an important warning of what is coming for the industry in general.
Another of the alerts that Khosrowshahi made is that there is a seismic change in the industry, for which it has to be prepared as a company.
“It is clear that the market is undergoing a seismic shift and we must react accordingly”explained the CEO in his mail to employees, to whom he listed the three drastic measures that they will take in the face of the current economic situation: receive a contract of employment with Uber will be a privilegecut marketing investment and cut incentive investment.
Uber runs out of budget for marketing
The announcement that Khosrowshahi warns of the worst situation that is being experienced in Uber and it is advancing with lead feet, as it is popularly spoken of drastic decisions, the cut in investment in marketing is an interesting indication of what to bet on marketing and what not to bet on.
The alert from this company warns us of a very important point and it is the decision that will impact the talent focused on marketing, what migration there will be from agencies to in-house and what actions agencies will take to adjust to the new budgets that are coming.
How the industry is rearranging
The paralysis that is coming in the labor market within the technology industry has Facebook and Robin Hood on the scene, after the announcements that they also made adjustments to their payroll, the second one laying off staff and the first one ceasing to appoint new senior positions within the company.
All this series of changes are important adjustments that have taken place in the industry and, most importantly, an example of how the native digital industry is experiencing an era of freezingwhere the study of times and movements will be fundamental for the marketing agencies that depend on these companies.
Today’s decisions, given today’s situation
The talent decisions that these companies are making are, without a doubt, an example of the serious issues that have been registered in the market and not only that, they show how important it is for the rest of the brands to build their own operating strategies, to face the cut that there will be in budgets and the competition against talent that, upon being fired, will undertake their own projects.
This movement that is coming will accentuate the work in areas such as operations and will define best practices in strategic creativity, since the direction that the industry average takes will depend on them.
Where we are
It is important to see that there are great pending in the digital scenario, when Facebook, Uber and Robin Hood announce budget cuts in marketing and talent, even leading the private transport company to qualify employment contracts as a “privilege”.
McKinsey said, according to a study conducted worldwide, that the main challenge within organizations due to digital transformation was, according to 51 percent of those surveyed, the opening of skills gaps, in traditional teams, as top talent moves to digital teams or products. For 48 percent it was cultural differences or conflicts between traditional and digital teams.