Uber cuts 435 more staff after losing billions in the second quarter | Business News
Uber has announced a new round of job cuts as the ride-hailing app and tech firm looks to save costs following heavy losses.
California-based Uber Technologies will shed 435 roles in its engineering and product divisions – about 8% of the workforce.
The news followed the loss of 400 marketing jobs at the end of July when chief executive Dara Khosrowshahi declared that big teams can deliver “mediocre results”.
Uber revealed a record second-quarter loss of £4bn in August, just months after its costly flotation in May.
The company also flagged a leap in research and development costs as it attempts to lead the race for driverless car technology.
Shares are currently 25% down on their flotation price.
As it revealed the latest job losses, a decision by the California senate threatened to add further, significant costs to its ride-hailing and food delivery operations.
Politicians have passed a new bill that gives greater wage and benefit protections to workers in so-called “gig economy” companies such as Uber and its North American rival Lyft.
The bill still needs final approval from the assembly.
In an email to staff, reported by Bloomberg, Mr Khosrowshahi said of the latest job cuts: “In the past, we grew our teams rapidly and in a decentralized way.
“This made sense as we worked to scale the business globally and find product-market fit… But at a certain point, bigger teams do not mean better results.”
Cost pressures are not the only challenge facing Uber.
Last month, Sky News reported that the company faced an uphill battle to secure a new five-year operating licence in London – its most profitable market outside the US – with passenger safety among regulatory concerns.