The 350 employees laid off by Uber is the last bout of layoffs in a plan that started earlier this year. These layoffs include employees from several departments, including Uber Eats, marketing, Advanced Technologies Group, and recruiting. The first bout of layoffs included 400 employees from their marketing team, followed by 435 employees from their product and engineering teams in the next few months. Some also have been relocated.
Although it seems like a big deal, in reality, only one percent of the company has been laid off. More than 70 percent of these layoffs are based in the United States and Canada. These changes have occurred partly due to the loss of more than $5 billion in the Q2 2019 report and a reevaluation of how the company stands today as compared to how it would be if started from scratch. Shares have dropped from the IPO pricing of $45 to $31.26 per share.
his is the email that Dara Khosrowshahi sent out to his employees explaining the changes:
As you know, over the past few months, our leaders have looked carefully at their teams to ensure our organizations are structured for success for the next few years. It has resulted in difficult but necessary changes to ensure we have the right people in the right roles in the right locations, and that we’re always holding ourselves accountable to top performance.
Today is the last wave of a process we began months ago with our Marketing team, and more recently, with Product and Engineering. This time, ATG, Eats, Global Rides, and Platform (Rides Ops, CommOps, Safety & Insurance, U4B, and Product Ops), Performance Marketing, and Recruiting have made changes. As part of this exercise, some of our employees are being asked to relocate. Around 350 people will be leaving the company.
Days like today are tough for us all, and the ELT and I will do everything we can to make sure that we won’t need or have another day like this ahead of us. We all have to play a part by establishing a new normal in how we work by identifying and eliminating duplicate work, upholding high standards for performance. We should give direct feedback and taking action when expectations aren’t being met, and eliminating the bureaucracy that tends to creep as companies grow.
We have proven ourselves to be not only one of the most ambitious and innovative companies in the world but also one of the most resilient. We’ve always pushed through tough times and come out the other side a better and stronger company—that will continue to be true tomorrow, and every day after.
As always, we’ll be at the All Hands tomorrow and will dedicate most of the time to answer your questions. Add yours to the slido here.
Eyes forward—back to the building.
The 350 employees laid off by Uber are supposedly the last of the current process. The next quarterly report for the company will be released on November 4.
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