Stock Ticker

  • Loading stock data...

Uber Technologies Inc. (NYSE:UBER) Lays Off Part of Its Global Marketing Team

On Monday The New York Times reported  that taxi hailing services company Uber Technologies Inc. (NYSE:UBER) had laid off close to 400 employees from the global marketing team a week before the company releases its Q2 2019 earnings report.

Uber looks to cut on spending

The laid off employees are drawn from the company’s 75 global offices and the move effectively reduces the number of global marketing employees from 1,200. According to the New York Times report the reduction of the number of employees is part of the ride-hailing company’s efforts to rationalize its operations as they look to minimise spending.

In May when the company went public it reported that it had lost close to $1 billion in Q1 2019. The company has performed unconvincingly in the New York Stock Exchange with its stock trading below the IPO price of $45 and in the last session it closed at $43.88.

The development comes hardly a month after CMO Rebecca Messina and COO Barney Hardford left the company last month. Following the departure of Messina, Uber CEO Dara Khosrowshahi consolidated the company’s communications, policy and marketing teams and the senior vice president for marketing and Public affairs Jill Hazelbaker.

Layoffs part of strategy restructuring at Uber

The New York Times reports that Hazelbaker sent an email on Monday to the Uber Marketing team explaining that the layoffs were a move the company is taking to streamline its operations and enhance the decision making process as well as consolidate the company’s marketing efforts in the market. Hazelbaker stated in the note that the way the marketing team is constituted currently cannot succeed citing redundancies, decision making, and team dissatisfaction as per an internal company survey.

Adding on the laying off of staff, Uber CEO Dara Khosrowshahi in a not to the employees said that the company has to admit when it is not where it is supposed to be and thus there is need for a review of its approach to set it back to success. He added that although the company has grown fast it nonetheless has slowed down and that needs to be addressed urgently.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

Recent Stories

Sponsored Content

Sign Up To Get Our Latest Stocks Alerts