Uber announced more than 400 layoffs in its engineering and product units Tuesday amid financial pressure stemming from its initial public offering, weeks after axing a similar number of marketing employees.
“Our hope with these changes is to reset and improve how we work day-to-day — ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility,” the company said in its statement. “While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization."
The statement, first reported by TechCrunch, was confirmed by an Uber spokesman. Uber has a total of about 27,000 employees worldwide.
The Washington Post recently reported that despite a half-billion-dollar marketing campaign last year, Uber’s internal metrics, based on a mixture of internal tracking and external polling, have recently placed brand sentiment near the same lows measured in the depths of the #DeleteUber movement in 2017. Uber’s brand dilemma has also complicated its already rocky start as a public company.
The company lost $5.2 billion in its most recent quarter, prompting stock prices to dip further. The need to ease investor concerns has triggered belt-tightening, including the marketing layoffs. The changes prompted some employees to suspect more cuts could be coming, workers told The Post.
Uber said in the statement the changes were made after Uber chief executive Dara Khosrowshahi asked executives to examine their teams through the lens of how they might look if they were building them from scratch.
“Previously, to meet the demands of a hypergrowth start-up, we hired rapidly and in a decentralized way,” Uber said in the statement.