Uber fires 435 employees after recording record loss | Business

The past few months have not been easy for Uber. After laying off 400 marketing employees in July, the company carried out a new round of layoffs. Now, 435 people have been terminated at various company offices.

Uber

According to the TechCrunch, the layoffs involve 170 employees on the product team and 265 on the engineering team. In a note sent to the site, Uber said the group represents approximately 8% of the two departments.

About 85% of the dismissed professionals worked in the United States. Another 10% were in the Asia-Pacific region and 5% in Europe, the Middle East or Africa. The layoffs do not affect teams from Uber Eats and the Uber Freight trucking service.

With approximately 27,000 employees, Uber says that part of its hiring was done very quickly and in a decentralized manner. The plan now is to keep teams lean, with clear roles and high performance.

“We are making some changes to put us back on track,” the company said in a statement. “We believe that this will result in a much stronger technical organization that, from now on, will continue to hire some of the best talent in the world.”

At the same time that it resigns, the company must resume hiring. The selection processes were interrupted in August precisely for product and engineering teams, which would have exceeded the hiring goals for the year.

The measure was adopted after the company recorded a record loss of US $ 5.2 billion in the second quarter of 2019. The result was influenced by the remuneration in shares for employees after its debut on the stock exchange in May.

However, even if this expense is not considered, the loss was US $ 1.2 billion. While revenue from car travel grew by just 2% in one year, Uber will need to invest in modalities like Uber Eats, which grew 72%, or continue to cut costs.

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