WHAT’S BEING CLAIMED:
- Over 400 employees from Uber’s engineering and product departments were given the boot on Tuesday, TechCrunch first reported.
- In a statement, Uber said the move was about staying efficient and competitive as a decade-old global company.
- Tuesday’s firings follow a hiring shutdown in some of Uber’s US departments in July.
Uber dismissed 435 product and engineering employees on Tuesday during its second major round of layoffs this year.
As reported first by TechCrunch, a representative from Uber confirmed to Business Insider that 170 people were laid off from the company’s product team while another 265 engineers will soon be leaving.
According to the Uber representative, the latest layoffs were another move to ensure efficiencies and to remain competitive as a now 10-year-old company.
“Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility,” the representative said in a statement.
“While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world,” the representative added.
Majority of the layoffs were in the United States.
Tuesday’s layoffs came after a temporary hiring freeze in some US company departments in Uber’s bid to slash costs and become profitable to placate anxious investors. The rep confirmed that the hiring shutdown has since been lifted.
Other cost-cutting efforts have included cancelling the traditional balloons given to employees on their work anniversaries, as well as requiring employees to be more heedful of their travel expenses.
However, amid the cost-cutting measures are new investments that will extend Uber’s presence beyond Silicon Valley. This week, the company announced a $200 million worth of investment in a new Chicago office to accommodate a growing freight team, along with another Dallas office for house sales and human resources workers.
On Tuesday’s trading, Uber shares climbed to 3.3% but stayed more than 20% below initial trading prices after the massive IPO of the company earlier this year.