His IPO shook the markets for its bulky red numbers. The pressure to accelerate its arrival to profitability has intensified in recent weeks. Uber has executed two layoff packages in less than two months that have meant the departure of more than 800 people in the marketing and engineering departments.
The first measure took place in July. The transport company announced the 400 employees leave the marketing department, which is a third of the entire workforce of this unit. "Many of our teams are too big, which creates duplicate work, creates problems when making decisions and can lead to mediocre results," said CEO of the company Dara Khosrowshahi, in an email to the rest of the team . The vast majority of these departures belong to positions located in the United States.
Before that first movement there was a jolt in the management team. CEO opened the door to two senior executives. On the one hand, the Director of Operations ('number 2'), Barney harford, very internally questioned about his behavior, according to The New York Times revealed in an investigation. For another, Rebecca Messina, marketing director. His responsibilities were divided between the person in charge of Communication and the CEO himself.
Now, a new technological movement arrives. But this time in one of the key departments in a company in this sector: that of engineering and product. He has communicated the 435 employees leave, which represents around 8% of the entire workforce in this division. "At some point, having larger teams does not mean getting better results. It is essential that we regain our advantage and continually strive to improve," the CEO said in another communication.
Most of the outings are concentrated in the United States. According to the specialized publication Techcrunch, which advanced this decision of the company, more than 85% of those laid off worked there, while 10% did so in Asia and 5% in Europe.
Pressure for losses
The premiere on the stock exchange, which took place in May, has resulted in a strong pressure from investors and shareholders to the bulky losses The company has been communicating. In the second quarter of this year, it suffered losses of 5.2 billion dollars, a new record. On the business side, the growth rate was the lowest since its foundation.
It should be remembered that these bulky losses were mainly due to compensation in the form of actions that the company has with its equipment and that were unlocked with the IPO. If this effect is excluded, the red numbers were placed at 1.3 billion dollars, well above the 878 million a year earlier.
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