Uber has fired 400 staff ahead of announcing a huge quarterly loss, three months after the ridesharing giant’s disappointing public listing.
The company let go about a third of its 1200-person marketing department, with employees sacked in 75 offices globally, as part of an effort to cut costs and make its operations more efficient, the New York Times reported last week.
Uber has an overall global headcount of nearly 25,000 people.
The tech giant is expected to announce huge quarterly losses later this week following its public listing on the New York Stock Exchange in May.
In an internal email sent to staff, Uber CEO Dara Khosrowshahi said there’s a “general sense’ within the company that it has “slowed down”.
“Today there’s a general sense that while we’ve grown fast, we’ve slowed down. You can see it in Pulse Survey feedback and All Hands questions, and you can feel it in much of our day-to-day work,” Khosrowshahi said in the email.
“This happens naturally as companies get bigger, but it is something we need to address, and quickly. These changes are incredibly difficult to make because they have a huge impact on people’s lives.
“Many of our teams are too big, which creates overlapping work, makes for unclear decision owners and can lead to mediocre results. As a company, we can do more to keep the bar high, and expect more of ourselves and each other.
“So, put simply, we need to get our edge back.”
Uber’s marketing team will now have a more centralised structure, led by VP of Performance Marketing, Mike Strickman, and another soon-to-be-hired head of global marketing.
It follows the departure of Uber’s chief operational officer and chief marketing officer earlier this year, along with a number of board members, including Arianna Huffington.
Khosrowshahi also recently revealed his plans to be more involved with the day-to-day operations of the tech titan, ordering that Rides and Eats report directly to him in the future.
It’s the latest cost cutting effort from the tech giant, which has been faltering since its much-anticipated public listing earlier this year.
Uber will be reporting its second quarter earnings later this week and is expected to reveal huge losses. Its first quarter earnings as a publicly-listed company showed that its loss from operations had grown by 116 percent to $US1 billion, despite revenue growing 20 per cent to $US3.1 billion.
Uber completed its IPO on the New York Stock Exchange in May, but its already conservatively-priced shares flopped on debut and continued to fall. The IPO price of $US45 per share dropped to $US42 on opening, and down a further 7.6 percent to $US41.57 at close.
Uber’s IPO filing admitted that the company expected its operating expenses to “increase significantly in the foreseeable future” and that it “may not achieve profitability”.