Uber Technologies is laying off 400 employees from its marketing department -- or roughly one-third of the staff members in that area of the ride-hailing company.
The cuts are part of a larger reorganization that combines Uber's marketing, communications and policy teams, CNBC notes. Senior VP Jill Hazelbaker now leads the combined teams. Chief Marketing Officer (CMO) Rebecca Messina and Chief Operating Officer Barney Harford stepped down in June ahead of the changes.
On the one hand, the reorganization seeks to deliver a "unified narrative to consumers, partners, the press and policymakers," CNBC asserts. But on the other hand, CEO Dara Khosrowshaki is seeking to address concerns that the business is slowing down and doesn't have a clear path to profitability, according to Bloomberg.
Related: Track all technology industry layoffs here, including company names, staff cut figures and the reasoning for such moves.
Uber Quarterly Financial Results: Path to Profitability?
Uber is scheduled to announce second quarter 2019 financial results on Thursday, August 8. Investors are seeking a clearer picture on the company's path to profitability. For the first quarter of 2019, revenue was $3.1 billion, up from $2.6 billion in the first quarter of 2018. However, the company had a net loss of $1 billion in Q1 2019.
After much hype, Uber and rival Lyft were IPO (initial public offering) duds earlier this year amid concerns about slowing growth and no clear path to profitability, The New York Times notes.
Still both ride hailing companies have a range of growth opportunities ahead -- including autonomous (i.e., driverless) services that may emerge over the next decade.
