Uber cuts hundreds more staff in drive to save costs
Written by Hit Music Radio News on 11/09/2019
Uber has announced a new round of job cuts as the ride-hailing app and tech firm looks to save costs following heavy losses.
California-based Uber Technologies said it was to shed 435 roles in its engineering and product divisions – about 8% of the workforce in each arm.
The news followed the loss of 400 marketing jobs at the end of July when chief executive Dara Khosrowshahi declared that big teams can deliver “mediocre results”.
Uber revealed a record second quarter loss of £4bn in August, just months after its costly flotation in May.
It also flagged a leap in research and development costs as it bids to lead the race for driverless car technology.
Shares are currently 25% down on their flotation price.
As it revealed the latest job losses, a decision by the California Senate threatened to add further and significant costs to its ride-hailing and food delivery operations.
It passed a bill that would give new wage and benefit protections to workers in so-called gig economy companies such as Uber and North America rival, Lyft.
It still needs final approval from the Assembly.
In an email to staff, reported by Bloomberg, Mr Khosrowshahi said of the latest job cuts: “In the past, we grew our teams rapidly and in a decentralized way.
“This made sense as we worked to scale the business globally and find product-market fit… But at a certain point, bigger teams do not mean better results.”
The threat from costs is not the only challenge facing Uber.
Sky News reported last month that the company faced an uphill battle to secure a new five-year operating licence in London – its most profitable market outside the US – amid continuing fears in several areas but especially over passenger safety.
© Sky News 2019