Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
10,840.6523.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Uber lays off hundreds more workers as it struggles to make money

Uber has been under pressure this year over its long-term viability. In August, it reported a record quarterly loss of $5.2 billion and its slowest-ever revenue growth.

New York Times|
Sep 11, 2019, 11.22 AM IST
0Comments
AP
Uber-AP
Uber employs more than 27,000 people globally, nearly half in the United States.
By Kate Conger and Mike Isaac

SACRAMENTO: Uber laid off 435 workers in its product and engineering teams Tuesday, the company’s second round of cuts in recent months as it struggles to make money.

The cuts, which total about 8% of Uber’s global product and engineering group, follow 400 layoffs in July from the marketing team. In a message to employees about the layoffs Tuesday that was viewed by The New York Times, Uber’s chief executive, Dara Khosrowshahi, said the company had gone off course as it grew and must streamline to regain its competitive edge.

“In the past, we grew our teams rapidly and in a decentralized way. This made sense as we worked to scale the business globally and find product-market fit,” Khosrowshahi wrote in the email, which echoed what he said in July with the previous layoffs. “But at a certain point, bigger teams do not mean better results. It’s critical we get our edge back and continually push ourselves to do better.”

Uber has been under pressure this year over its long-term viability. In August, it reported a record quarterly loss of $5.2 billion and its slowest-ever revenue growth.

Khosrowshahi has shaken up Uber’s top ranks and tried to cut costs. After cutting jobs in the marketing team in July, he instituted a monthlong hiring freeze and instructed executives to reevaluate the size of their teams. In addition, he pushed out top executives, including his chief operating officer and chief marketing officer. Uber’s board has also undergone some turnover.

Uber employs more than 27,000 people globally, nearly half in the United States, a company spokesman said.

Also Read

UberEats to ride with its main app in India

Ola, Uber to have a competitor in city

How would Ola, Uber cause truck sales to plummet: Yashwant Sinha

Uber is sued over resistance to California 'gig' contractor law

Uber holds gender sensitisation workshops for its drivers in Chennai

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service