Uber says that it is laying off 8% of its product and engineering teams, as the ride-hailing service seeks a route to profitability.
According to a report by AFP, the San Francisco-based company is cutting about 265 people from its engineering group and another 170 from its product team.
Even though it’s a fast-growing startup, Uber employees around the world had increased to about 27,000 and the time had come to shift gears and reduce its workforce for efficiency, according to the company.
“We’re making some changes to get us back on track, which include reducing the size of some teams to ensure we are staffed appropriately against our top priorities,” the Uber spokesman said.
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.
Uber plans to continue to hire top technical talent, but with a focus on “lean, exceptionally high-performing teams,” the spokesman added.
In July, Uber fired 400 employees from its marketing team of more than 1,200 workers to reduce costs and improve efficiency.
A month earlier, Uber chief executive Dara Khosrowshahi had tightened his grip on the ride-hailing firm following a bumpy stock market debut.
Stock Market Performance
After debuting in May at $45 for the initial public offering — translating to a market value of $82 billion — Uber shares declined in value. Uber shares gained a little ground on Tuesday, up nearly 4 percent to $33.51 at the close of the formal trading day on Wall Street. The shares tumbled last month after the leading ride-share company reported that its loss surpassed market expectations in the second quarter of this year.
Uber’s revenue grew by 14% to $3.2 billion, but it lost $5.2 billion as compared to losing $848 million in the same period last year. Stock related compensation expenses took a huge bite out of its revenue, the company said.
While the firm has lost billions since offering its first rides in 2011 in its home city of San Francisco, it envisions becoming the “Amazon of transportation” in a future where people share rides instead of owning vehicles.
The company has moved to electric bikes, trucking, and scooters, as well as meal deliveries, and has a long-term project on flying taxis.