Bottom line: All eyes will be on Uber come August 8 when it reports its second-quarter earnings. Its first-quarter results exhibited the company’s slowest growth in years and was backed by a loss of more than $1 billion.
Uber laid off nearly a third of its global marketing team on Monday as it attempts to reduce costs and streamline efforts related to its initial public offering back in May. The cuts equate to roughly 400 people who are now out of a job.
Uber went public in early May and lost a significant amount of value in the first few days. Things have slowly recovered a bit and now, Uber is trading around $43.80 per share.
Uber’s communications lead, Jill Hazelbaker, said in an e-mailed statement to marketing staff on Monday that the 400 layoffs were necessary because the team had grown bloated and decision-making was unclear. After all, the team’s organizational charts stretched to more than 388 pages, the executive said.
Uber CEO Dara Khosrowshahi echoed similar sentiments in his e-mail to employees, saying that many of their 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.”
Masthead credit: Waiting for an Uber by TY Lim