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Uber fired about 25% of its 1,200 employees from its marketing department to reduce costs and make operations more efficient after its public debut and $ 1 billion in losses in the first quarter.
Layoffs were first reported by the New York Times.
About 400 people from Uber's marketing department have been fired in 75 offices around the world, according to the company. The last global workforce of Uber was 24,494 people as of March 31, 2019.
Jill Hazelbaker, who leads marketing and public relations at Uber, and general manager Dara Khosrowshahi, told employees Monday that the marketing team centralized structure, according to an internal email consulted by TechCrunch.
The reorganized marketing team will be under the direction of Mike Strickman, vice president of performance marketing, who joined TripAdvisor a month ago and another global marketing executive who is expected to be hired soon. Strickman will supervise performance marketing, customer relationship management and badytics, while the global marketing manager will manage product marketing, brand, food, B2B, research, planning and creation.
Layoffs are the latest changes that have occurred within the company since its publication in May.
A large number of Uber teams are "too big, which creates duplication, creates uncertain decision-makers and can lead to poor results," Khosrowshahi said in an email sent to employees and shared with TechCrunch. "As a company, we can do more to keep the bar high and hope more for ourselves and others."
Khosrowshahi said the restructuring was aimed at putting the marketing team and the company back on track.
"Today, we have the general impression that while our growth has been rapid, we have slowed down. You can see it in the comments on the Pulse Poll and in the questions on all hands, and you can feel it in most of our daily work. That happens naturally as companies grow, but we need to tackle it quickly, "he wrote.
Uber's first quarterly results as a publicly traded company provided insight into a growing company with staggering operational losses. Uber's revenue grew 20 percent to $ 3.1 billion from $ 2.5 billion for the same period last year. And its gross bookings jumped 34% to $ 14.6 billion in the first quarter, thanks mainly to Uber Eats.
But its operating loss exploded 116%, reaching $ 1 billion in the first quarter compared to the same period last year.
In June, the chief operating officer, Barney Harford, and the director of marketing, Rebecca Messina, resigned as part of an organizational reshuffle set in motion just one month after the announcement. public launch of the company.
At the time, Khosrowshahi explained in an email to employees that the changes had been motivated by his decision to more directly control the main sectors of the company. Khosrowshahi told his employees that he wanted to be more involved in the daily activities of his larger companies, the main platform of Rides and Eats, and had decided that they should report directly to him.
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