Uber is making a third round of staff cuts this year, according to a company-wide email from CEO Dara Khosrowshahi, which wasfirst reported by CNBC. The company is laying off about 350 employees, or around 1.5 percent of its workforce, with cuts affecting the self-driving and Uber Eats teams, among others. An undisclosed number of employees are also being asked to relocate, according to the email.
The new round of cuts are the “last wave of a process we began months ago,” Khosrowshahi said in the email. “We all have to play a part by establishing a new normal in how we work: identifying and eliminating duplicate work, upholding high standards for performance, giving direct feedback and taking action when expectations aren’t being met, and eliminating the bureaucracy that tends to creep as companies grow. ”
Uber spent years burning money as it expanded into markets around the globe. But it’s been trying to trim fat ever sinceits shares started trading on the New York Stock Exchange earlier this year, which gave investors (and the general public ) a look at just how much money the ride-hailing company churns through. Things have only gotten worse, as the company lost $ 5.2billionin thesecond quarter of 2019alone, nearly double its losses for all of 2018 combined.
Uber has already made some cutsto its self-driving teamin the wake of the death of Elaine Herzberg, who waskilled by one of the company’s test vehiclesin March 2018. Khosrowshahi reportedly considered ending the program altogether, though the company has since resumed testing, and recently unveiled anew version of its test vehicle.
Beyond the staff cuts, Uber is trying a number of different methods to better balance its books. The company has been trying to grow its Eats food delivery service, which it sees as apotentially huge profit driverin the near term. But the ultimate goal, as stated by Khosrowshahi, isto becomethe “one-stop shop for the movement of people and powering local commerce around the world. ”Uber recently showed off what that vision will look like when itupdated its appto include everything from public transit, to dockless bikes and scooters, to for-hire cars driven by an increasingly frustrated workforce of driversthat the company classifies as independent contractors.