Uber, to cut costs and make operations efficient, is set to lay off almost one-third of their 1,200-person strong marketing department, following its first-quarter losses of $1 billion and public debut. As per the layoffs reported by The New York Times, in the marketing department of Uber, about 400 people were laid off globally across their 75 offices.
As of March 31, 2019, Uber’s newest public global headcount was 24,494 employees across the globe. As per an email seen by TechCrunch, on Monday, Jill Hazelbaker and CEO Khosrowshahi told the company workers that the marketing team requires a well-centralized structure.
Moreover, this layoff is the newest cost-driven modification that has to occur at the company. Most of the teams at Uber “too big, which creates overlapping work, makes for unclear decision owners, and also can lead to mediocre results,” Khosrowshahi stated in an email (shared with TechCrunch), which was sent to workers.
“As a company, we can do more to keep the bar high, and also expect more of ourselves and each other,” Khosrowshahi said. He then added, “Today, there is a general sense that while we’ve grown fast, we’ve slowed down. You can see it in Pulse Survey feedback, and All Hands questions and you can feel it in much of the day-to-day work. This happens naturally as companies get bigger, but it is also something that we need to address, and quickly.”
Moreover, in an email to employees, Khosrowshahi also explained that the modifications were prompted in order to more directly controlling the core business parts. He also told employees, he urges to be taking part in the regular operations of its largest businesses even more now, Rides and Eats and has also made a decision that they will have to report to him directly.