Uber has fired 435 employees from its engineering and technology teams amid a & # 39; shift & # 39; in the design of the organization.
The cutbacks mean that around 170 people in the company's product group and 265 people in engineering have been omitted, comprising around eight percent of the two departments.
However, the company, which does not yet want to make a profit, has vowed to continue hiring some of the very best talent in the world & # 39 ;.
In a statement published Tuesday, Uber explained how, in order to meet the requirements of a hyper-startup business, & # 39; fast & # 39; and hired in a decentralized way.
The move comes because Uber reported a loss of $ 5.2 billion in the second quarter of 2019.
In a statement from the company, Uber explained how it could meet the requirements of a start-up business with hyper growth, renting & # 39; fast & # 39; and in a decentralized way
The company, which is yet to make a profit, has vowed to continue to hire some of the best talent in the world & # 39;
"Although this worked for Uber in the past, now that we have more than 27,000 full-time employees in cities around the world, we need to change how we design our organizations," the statement said.
& # 39; Lean, exceptionally high-performing teams, with clear mandates and the ability to run faster than our competitors. & # 39;
Uber added that although the cuts were currently & # 39; certainly painful, especially for those who were directly affected, the move will result in a much stronger technical organization.
A source close to Uber told TechCrunch that the layoffs had no effect on Eats, one of Uber & # 39; s best performing products and freight
& # 39; Our hope with these changes is to reset and improve day-to-day operations – ruthlessly prioritizing and always keeping ourselves responsible for a high level of performance and agility, & # 39 ;, the statement said.
A source close to Uber told TechCrunch the redundancies had no effect on Eats, one of Uber & # 39; s best performing products and freight.
The move comes after the ride-hailing company cut its marketing department by a third in July and laid off around 400 employees worldwide.
Uber – who has never made a profit – has been actively working to limit the losses that reached $ 1 billion in the first quarter of 2019.
Uber's shares plummeted last month after the leading ride stock company reported that its loss had overshadowed market expectations in the second quarter of this year.
The company said revenue grew 14 percent to $ 3.2 billion, but it lost $ 5.2 billion compared to a loss of $ 848 million in the same period last year.
Chief Executive Dara Khrosrowshahi (photo) has continued to drastically change the business, starting with the expulsion of two members of the executive team, COO Barney Harford and Chief Marketing Officer Rebecca Messina, in June
Ride hailing, which is largely dependent on providers who spend huge sums of money to recruit drivers and subsidize discounted trips to fend off competitors, is a costly business model.
Such doubts ultimately affected Uber's IPO, with a price drop of 7.6 percent on the first day of public trading in May.
Since then, Chief Executive Dara Khrosrowshahi has continued to drastically change the business, starting with the removal of two members of the executive team, COO Barney Harford and Chief Marketing Officer Rebecca Messina, in June.
The California Senate on Tuesday passed a bill that would offer new wages and benefits to employees at so-called gig economy companies such as Uber and Lyft.
The vote of 29-11 late on Tuesday had the bill sent back to the state assembly for final approval on the shrill Republican opposition. Democratic government Gavin Newsom has said he supports it.
The proposal has attracted fierce opposition from on-demand delivery and companies on the move, while receiving support from many of the Democratic presidential candidates.
It is triggering a decision of the California Supreme Court that makes it more difficult for companies to classify employees as independent contractors. The bill would ensure that those companies would classify their employees as employees instead.
Although its impact on companies in the gig economy has attracted the most attention, it would affect a wide range of industries.
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