According to Uber, they have recently laid off around 400 employees from its marketing team. The company has stated that they aim at cutting cost and streamline its operations after its initial public offering in May.
Uber has 75 offices across the globe and the layoff will be implemented across all the offices. The marketing team had more than 1,200 people before the layoffs. Uber employs almost 25,000 people globally, nearly half of whom are based in the United States, according to recent regulatory filings.
During its journey to the public markets, the company faced numerous questions from Wall Street about whether it could make money. Ride-hailing is an expensive business, with companies often spending a huge amount to recruit drivers and subsidize trips. Those doubts ultimately took a toll on Uber’s I.P.O., with the company’s stock falling 7.6 percent on its first day of trading on the New York Stock Exchange.
Uber‘s Cheif executive, Dara Khosrowshahi, pushed out two members of his executive team: Barney Harford, the chief operating officer, and Rebecca Messina, the chief marketing officer. Jill Hazelbaker now heads the marketing team at the company.
Hazelbaker added that she plans to consolidate Uber’s regional marketing teams around the world, including in the United States and Canada, Latin America and the Middle East. The marketing team oversees ride promotions, advertising campaigns, and social media.
Uber reported its first-quarter results and posted its slowest growth in years and a loss of more than $1 billion. According to FactSet, the company is scheduled to report its second-quarter earnings in the month of August. Uber is expected to report a loss of $2.09 a share next week on revenue of $3.3 billion.
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