Uber, the popular cab hailing service has decided to lay off yet another 400 plus strong workforce. This time, the company has targetted cleaning up Product and Engineering sections and has laid off 435 people from these two departments.
Of them, 170 belong to the product team and another 265 to the engineering team. The total layoffs constitute around 8 per cent of the total workforce of Uber. The report first came up on TechCrunch, and the company claims that the efforts were in tune with its efforts to reset.
The company has had a series of losses in the past few months and going through a deep slump in terms of revenue growth. The decision to lay off seemingly is a result of the debacle that its stocks have been experiencing at the Wall Street. The rates rose up by 4 per cent after this decision, but still over 25 per cent lower than what it was initially.
The report cites an Uber spokesperson saying, “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”. This is, incidentally the second time that Uber has laid off its staff in under six weeks time. Uber had laid off around 400 people in his first phase and had cited restructuring as one of the reasons for these job cuts.
The company email from Uber CEO Dara Khosrowshahi stated that, “It’s critical we get our edge back and continually push ourselves to do better”. The statement released by Uber to TechCrunch states that
“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. While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world.”
Uber has suffered a loss of over $ 5 billion over the second quarter of 2019 and the layoffs appear to be in response to these losses. It is not clear whether the recession is responsible for this slump in business.