The popular ridesharing app Uber has reportedly laid off 400 employees in the marketing department to ‘get its edge back’. Uber has lost three board members and two top executives.
The move was reportedly made in an effort to cut costs, New York Times reports. Uber is currently under a shaky transition period as the ride-hailing app attempts to gain footing as a publicly-traded company.
Uber’s CEO Dara Khosrowshahi reportedly wrote in a staff email:
“Many of our teams are too big, which creates overlapping work, makes for unclear decision owners, and can lead to mediocre result. As a company, we can do more to keep the bar high and expect more of ourselves and each other. So, put simply, we need to get our edge back.”
The company has not released a public statement regarding the issue. Uber reportedly announced the layoffs internally on Monday. It is expected to take place in several of the company’s global offices. The 400 marketing employees represent on-third of the company’s marketing department, more or less. The said department is in charge of handling ads, social media advertising, and ride promotions.
In April, the company addressed its rocky start as a public trade in a regulatory filing that wrote: “We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability.” Uber’s stock fell by almost 8% in May as it shares hovered around a USD45 IPO price.
Lyft, Uber’s rival company, has also seen a similar rocky star since going public earlier this year as it faces stockholder lawsuits.