Uber laid off one-third of its marketing group– or 400 workers– as the business reorganizes months after its frustrating preliminary public offering (IPO). Independently, its competitor Lyft reportedly lost a key executive as both business have a hard time to solution to investors who want to see a profit.
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Uber CEO Dara Khosrowshahi announced a brand-new centralized structure for the company’s marketing team internally, including news of the layoffs on Monday, a business spokesperson said.
Worldwide, the company currently workers about 25,000 individuals. Uber, as well as Lyft, does rule out chauffeurs to be employees and they are not consisted of in these numbers.
Uber ended up being an openly traded business in May, and in the run-up to its IPO, the business’s business plans were scrutinized for their absence of a clear path to profitability. The stock lost 7.6%of its value on the very first day of trade.
The following month, Khosrowshahi charged Jill Hazelbaker, formerly senior vice president of policy and communications, with leading the marketing team. On Monday, he debuted a plan for a more constant branding, the company said.
On the other hand, Uber’s rival Lyft saw a high-level departure as its chief operating officer Jon McNeill left the business, according to a notification filed with the Securities and Exchange Commission (SEC).
The news was first reported by Bloomberg Lyft’s co-founders will not change him, Bloomberg said.
Lyft did not right away respond to an ask for talk about McNeill’s departure.