Uber axes 400 jobs globally after posting $1-B Q1 loss

Andrew Cummings
July 31, 2019

About as much as 400 employees from the marketing team across 75 offices globally were asked to leave. But its loss from operations exploded 116%, to $1 billion, in the first quarter compared to the same year-ago period.

When it issued its initial public offering in May, its stock fell by almost 8 per cent.

The ride-hailing company has struggled to prove it can become profitable and its stock has traded mostly below its IPO price since its debut in May.

Uber went public in early May and lost a significant amount of value in the first few days.

Dara Khosrowshahi, the CEO, told employees of the changes in an email Monday.

Many of Uber's teams are 'too big, which creates overlapping work, makes for unclear decision owners, and can lead to mediocre results, said CEO Dara Khosrowshahi.

Uber on Monday laid off around 400 people in its marketing team, about one-third of the company's 1,200 department members.

Uber had said it might never be profitable with the yearly loss of $1 billion despite its growing revenue.

Bottom line: All eyes will be on Uber come August 8 when it reports its second-quarter earnings.

"Today, there's a general sense that while we've grown fast, we've slowed down", Khosrowshahi wrote in the email reviewed by Bloomberg. "So, put simply, we need to get our edge back".

The layoffs come after Uber announced last month that Chief Marketing Officer Rebecca Messina was stepping down as the company moved to combine its marketing, communications and policy teams, CNBC reported.

The reorganised marketing team would be under the leadership of Mike Strickman, vice president of performance marketing, who joined from TripAdvisor a month ago and another to-be-hired head of global marketing.

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