Uber is one of the technology companies that attracts much attention. Its field is ride-sharing. Now it wants to cut more than 400 jobs in both its product team and engineering team. Currently, the company has over 27,000 full-time employees globally (almost half that number are US-based).
According to an official statement, management now wants to streamline the company and base it more on exceptionally high-performing teams in order to stay ahead of competitors.
Most of the employees to be laid off are based in the US. This comes shortly after Uber announced the sacking of another 400 people from its marketing team just a few months ago. The company's CEO explained in an internal email that such steps are based on the fact that once they have reached a certain size, bigger teams do not necessarily produce better results.
Record loss: will profitability improve?
However, some journalists claim that Uber has been under significant pressure recently and investors may be worried about its long-term viability. Uber’s stock was falling and then the company showed a record quarterly loss of over 5 billion USD. At the same time its revenues are also growing at a much slower pace than in the past, according to an article on the cfo.com website.
The company's CEO has tried to cut costs by ordering a hiring freeze. The company’s losses were partly blamed on costly promotions, which were put in place to attract riders and new drivers. Subsequently there were cost-cutting measures at the driver level. Now the corporate side of the company is being reduced so as to improve profitability.
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