Original title: what happened to Uber's announcement of cutting 350 people? Why did Uber announce the layoff of 350 people?
According to foreign media reports, Dala & middot, CEO of Uber; Koslow Sasi (Dara Khosrowshahi) announced in the email of Zhou's unanimous staff that the company will lay off a number of departments in its organizational structure, involving about 350 employees in the Uber Eats and auto driving departments. Driven by this, Uber shares rose 3.29% against the market on Monday.
Under the leadership of kosrosasi, Uber has been trying to control losses. Prior to the layoffs, Uber announced at the end of July that it would cut about 400 jobs worldwide, mainly in the marketing department. Kosrosasi said at the time that the company would restructure its global marketing department. He pointed out: 'any of our teams are too large, which will cause overlapping work, lead to unclear decision-making owners, and may lead to mediocre results. As a company, we can do more to maintain high standards and have higher expectations for ourselves and each other. " Before the layoff, the company's marketing team had about 1200 employees. After the layoffs, Uber's global marketing department has only 800 employees left.
In September this year, Uber announced 435 job cuts for its products and engineering team. Overall, the number of layoffs accounted for about 8% of the total employees of the two teams, including 170 layoffs in the product team and 265 layoffs in the engineering team. Through the above two layoffs, Uber has laid off about 800 people in total. Plus the layoffs, plus the layoffs, Uber will cut about 1200 people after the IPO.
Since the initial public offering in May this year, the cumulative decline of Uber's share price has reached about 30%. Investors expressed concern about the company's increased losses and slower revenue growth. Uber lost more than $5 billion in the second quarter because it included the equity incentive expenses generated by listing.
Kosrosasi said in an email on Monday that executives may elaborate on the layoffs at a company wide meeting on Tuesday. Techcrunch, a technology blog, reported the layoffs early Monday, which was later confirmed by a Uber spokesman. A spokesman for the company said that about 70% of the layoffs occurred in North America.
Uber shares rose $0.99, or 3.29%, to $31.12 in regular trading on the Nasdaq stock market on Monday. Since its listing, Uber's lowest share price is $28.31 and its highest share price is $47.08. According to Monday's closing price, Uber has a market value of about $52.9 billion.
The following is a summary of kosrosasi's email to Uber employees:
Uber team:
As we all know, in the past few months, our leadership team has carefully observed their team to ensure that the company's organizational structure can be successful in the next few years. This leads to difficult but necessary changes to ensure that we have the right people in the right places in the right roles and that we are always responsible for the highest performance.
Today is the last round of layoffs in our marketing team, followed by the product and engineering team in recent months. This time, the automatic driving department, Uber eats, global travel and platform, performance marketing and recruitment departments will all change. As part of this work, some of our employees have been asked to change jobs, and about 350 people will leave the company.
Days like today are difficult for all of us, and I and other executives will do everything we can to ensure that there are no layoffs. We must all play a role in establishing a new normal for our working methods: identifying and eliminating duplicate work, adhering to high standards of performance, giving direct feedback, taking action when expectations are not met, and eliminating bureaucracy that spreads with the development of the company.
We have proved that we are not only one of the most ambitious and innovative companies in the world, but also one of the most resilient companies. We've had some tough times and become a better and stronger company - tomorrow and every day thereafter.
As usual, we will hold a full meeting tomorrow and take the time to answer your questions.