The Uber marketing department has been shrunk as the firm announces it will lay off 400 employees or a third of the global marketing department.
The lay-offs were announced internally according to The New York Times and marketing employees around the world now face the hammer. Uber’s marketing team had as many as 1 200 employees before the lay-offs.
The reason for these lay-offs is money, among other things.
For one – Uber is struggling to turn a profit. Since it started publicly trading on stock markets the scope of the losses at Uber have been thrown into sharp relief. Losses from the first quarter of the year climbed 116 percent to $1 billion.
In addition to money, Uber has simply grown to quickly according, to chief executive officer Dara Khosrowshahi.
“Today, there’s 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 our day-to-day work. This happens naturally as companies get bigger, but it is something we need to address, and quickly,” Khosrowshahi said in a memo seen by TechCrunch.
The CEO also noted that Uber’s teams have become too big, creating a situation where work overlaps, leads to unclear decision owners and ultimately mediocre results.
“As a company, we can do more to keep the bar high, and expect more of ourselves and each other,” the CEO said.
Whether these job cuts will help Uber turn the tides remains to be seen but we should see some effects when Uber releases the next quarter’s results