It appears things are not going too well at Uber. The newly-public company has announced that they will be letting go of around 400 employees in its marketing department. According to the company, the reason behind the large number of layoffs is due to the much-needed restructuring of the department as well as to cut costs and smoothen operations. The changes are expected to streamline the Uber brand across different audiences, products, and regions by consolidating regional marketing teams across the world.
The newly reorganized marketing team will then be under the leadership of Mike Strickman, vice president of performance marketing and a soon-to-be-hired executive as head of global marketing. Strickman will oversee performance marketing, while the head of global marketing will manage the brand, product marketing, research, and etc.
Before the layoffs, Uber's marketing team was initially composed of around 1,200 people across 75 different offices globally. However, due to the almost $1 billion loss in the first quarter of 2019, slow revenue growth, and falling stock, the ride-sharing company had to slash costs and reorganize the company in order to turn things around.
Globally, Uber has a total of 24,494 employees as of March 31, 2019. However, Uber might have to let go of more employees should they continue to experience losses. The company is set to report its second-quarter readings on August 8, which would showcase whether the company was able to improve from its first-quarter loss.
Do remember that Uber no longer operates in South East Asia, which means they have already shrunk from their previous size. The company sold its Asia-Pacific assets to Grab after losing market share and officially pulling out from the region.
Source: New York Times