New Delhi: Uber has laid off 435 more employees from its engineering and technology teams, in its latest effort to stem growing losses. In July, too, the company had laid off 400 employees.
Of the 435 employees, 170 are from the Products department while 265 from the Engineering department, consisting of roughly 80% of the total workforce of the two departments. This latest round of firing also affects regional offices, with 85% of those laid off working in the US, 10% in the Asia-pacific and the remaining 5% in Europe, the Middle East and Africa.
In an e-mail statement to its employees, the San Francisco, California-headquartered cab-hailing aggregator said, “Previously, to meet the demands of a hyper-growth startup, we hired rapidly and in a decentralized way. However, while this worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to shift how we design our organizations.”
The statement further said that while the layoffs were certainly painful at the moment, especially for those directly affected, these will result in a much stronger technical organisation.
In the second quarter of 2019, Uber reported a loss of $5.2 billion. It was in the first quarter that its loss reached $1 billion.
In another setback to Uber, the California state on Tuesday passed a new law that would force it, as well as companies like Lyft etc. to treat contract workers as employees. Currently, it relies on independent contractors as drivers as their freelance status helps save costs by allowing companies to not provide the drivers full-time salary or pay.
Uber employs nearly 27,000 people, nearly half of them in the United States.