The Mercury News

Report: Uber sacks hundreds of workers

Company’s engineerin­g, product units hit hard with 435 layoffs

- By Ethan Baron ebaron@bayareanew­sgroup.com

San Francisco ride-hailing giant Uber has laid off 435 workers from its engineerin­g and product units as it seeks to create “lean” teams, according to a new report.

The company, which last month announced a $5 billion loss for this year’s second quarter, has shown the door to 265 people on the engineerin­g team and 170 on the product team, the report said.

More than 85 percent of the turfed employees were based in the U.S., according to the report Tuesday by TechCrunch.

The number of workers sacked amounts to about 8 percent of Uber’s workforce in the two units, Uber told the tech site in confirming the layoffs.

A source told the tech website that Uber is lifting a hiring freeze for the engineerin­g and product units that had been in place since early August.

“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,” an Uber spokespers­on told TechCrunch. “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 job losses didn’t hit Eats, the company’s restaurant-food-delivery service and one of Uber’s topperform­ing products, or its shipping service Freight, TechCrunch reported, citing a source familiar with the layoffs.

To decide who was going to be sent packing, Uber leaders looked at team sizes, duplicate roles and overlappin­g work, along with individual performanc­e, according to TechCrunch.

“Previously, to meet the demands of a hypergrowt­h startup, we hired rapidly and in a decentrali­zed way,” Uber’s spokespers­on told the tech site. “While this worked for Uber in the past, now that we have over 27,000 fulltime employees in cities around the world, we need to shift how we design our organizati­ons: lean, exceptiona­lly high-performing teams, with clear mandates and the ability to execute faster than our competitor­s.”

In June, Uber said it had laid off about a third of its marketing employees, about 400 people, to cut costs.

 ?? JOSH EDELSON — GETTY IMAGES ?? Uber leaders looked at team sizes, duplicate roles and overlappin­g work as criteria for the layoffs.
JOSH EDELSON — GETTY IMAGES Uber leaders looked at team sizes, duplicate roles and overlappin­g work as criteria for the layoffs.

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