Uber has Cut More than 1,000 Jobs Since July
On Monday Uber laid off 350 employees to cut cost and appease investors. (Uber reported a record quarterly loss of $5.2 billion in August). This third round of layoffs focused on the autonomous vehicle unit, operations, recruiting and customer support and brought the total cuts to above 1,000 jobs (2 percent of work force) since July.
In an email to employees announcing the latest layoffs, Mr. Khosrowshahi wrote, “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’s self-driving car unit, the Autonomous Technology Group, or A.T.G., was spun out from Uber in April after a $1 billion investment from SoftBank, Toyota and the Japanese automaker Denso. The deal valued A.T.G. at $7.25 billion.
Shares of Uber began trading on Wall Street in May, in one of the most anticipated IPO in recent years. But like many other recent offerings it has disapointed on the street. Its price is down about 30 percent since the first day of trading.
Investors reacted favorably to the layoffs on Monday, sending Uber’s share price up 4 percent in afternoon trading.