The ride-providing company Uber has once again fired almost hundreds of employees. Now, the cut has been made in product and engineering departments in order to reset. The company made a formal announcement where they have mentioned that 435 employees have been fired, 265 from the engineering team and the rest 170 from product department. Uber also informed that layoffs account to 8% of engineering and product teams. However, the layoffs have remained unaffected to both engineering and product staff who work on the other venture by Uber: UberEats, the food delivery service.
This news has made to the headlines and the company is under tremendous pressure to cope up with their finances after a lackluster start at Wall Street during May. The company has experienced sharp losses in the past and even the revenue growth is very slow. Although stocks of Uber has increased by 4% after the news, it is still 25% less than what it used to be.
This employee cut is the second in a row since the company went public just 6 weeks ago. Few days prior to the last earning report which was published in July, Uber eliminated approximately one-third of the staff from global marketing team. 400 lost their jobs. During that time, Dara Khosrowshahi, CEO had said the step was an attempt necessary to restructure the operations and make it more worthwhile.
Dara said that people in general tend to believe that they have grown quite fast, but now is the time for them to slow down. He also said that initially, Uber had hired people without selection and judgment just to meet the demands of a fast growing startup. But, now, organizing the teams in receive maximum efficiency is mandatory for Uber to grow in the business. Uber has denied commenting on whether or not any other departments are being considered for layoffs.