It is a tough time for the International Ride service company. After facing a huge loss in the second half of 2019, Uber is in the process of filtering. After cutting around 400 employees in July, followed by 435 in September, the company is in the final round of knocking down. This time Uber Knocks out around 350 Employees in the Self-driving and Eats team, followed by the employees in its products team, engineering team, and marketing team.
According to CNBC, yesterday Dara Khosrowshahi, CEO of Uber, sent a remorseful email to the employees across the company. He assured the employees that this would be the last wave to hit the shore. The email consists of the following message
“We all have to play a part by establishing a new normal in how we work: identifying and eliminating duplicate work, upholding high standards for performance, giving direct feedback and taking action when expectations aren’t being met, and eliminating the bureaucracy that tends to creep as companies grow.”
In the past few months, the company has laid off around 1% of its employees. Khosrowshahi stated that the layoff process started early this year. He also stated that after consulting the experts in each team, they decided to start the layoff process from scratch.
Lately, Uber is hitting its bottom after the company stock price is down about 30%. The company lost more than $5 billion in the second quarter. In order to revive from further loss and to gain the trust of Investors, Uber took the process of lay off in their hands.
The layoff affected almost all the departments of the company. Around 70% of the employees based in the U.S. and Canada and the rest of the employees are across the world. In this process, the company asked some of the employees to relocate.
According to the CEO, the overall statement about the layoff is that
“This has resulted in difficult but necessary changes to ensure we have the right people in the right roles in the right locations, and that we’re always holding ourselves accountable to top performance.”
On the other hand, Uber works in improving other services like food delivery and grocery delivery. In a hosted event, during last month, Uber stated that they want to provide an end-to-end service to their clients.
It includes services like Uber Eats, bikes and scooters, public transportation, and its core ride-hailing app. Here are the views about layoff by various people. Ives said this likely isn’t the last round of layoffs for Uber, which still has a lot of work to do to improve its financials.
However, Tom White, an analyst for D.A. Davidson, said that the layoffs affecting the marketing division might actually be a positive sign. It could be a sign of tempering U.S. competition or that Uber has already achieved a high level of domestic consumer awareness.
It “sounds like this is the final step of three-phases of layoffs this year,” he said.
It is clear that under huge pressure, Uber is expecting to present its third-quarter by Nov 4. There are different insights about the lay of among both professionals as well as the public. Will this knockout work out? The answer is hidden in the further progress of the company.