The layoffs are part of Uber's efforts to optimize operations and reduce spending, according to The New York Times.
- Uber laid off 400 marketing employees on Monday, reducing its global marketing team from over 1,200 employees, The New York Times reports.
- The layoffs are reportedly part of Uber's efforts to streamline its operations and reduce spending.
- Uber went public in May.
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The employees come from Uber offices globally, and the team is being reduced from over 1,200 employees, per the report.
The layoffs are part of Uber's efforts to streamline its operations and reduce spending, the Times reports. Uber went public in May, revealing that it lost about $1 billion in the first three months of the year.
This news comes after COO Barney Harford and CMO Rebecca Messina left the company in June. Messina's departure led CEO Dara Khosrowshahi to combine the company's marketing, communications, and policy teams under Jill Hazelbaker, SVP of marketing and public affairs.
The Times reports that an email from Hazelbaker sent to the Uber marketing team on Monday explained the layoffs as a move towards streamlining the decision-making process in such a large organization, as well as a step towards consolidating its marketing efforts in major markets.
In 2018, Uber spent $3.2 billion — 28% percent of its revenue — on sales and marketing ahead of its IPO. That represents a 25% spending increase on marketing from 2017. In comparison, competitor Lyft spent just $800 million in total sales and marketing in 2018.
Uber did not provide a forecast for its second quarter when delivering its first quarter report in May, an atypical omission. However, the company did indicate that sales and marketing expenses, as a percentage of gross booking and adjusted net revenue, would decline in the second quarter.
Uber's first-quarter earnings were above Wall Street's expectations but aligned with the company's predictions. Uber reported a loss of $2.26 per share on revenues of $2.76 billion, on an adjusted basis.
With Uber's top-level marketing leader recently departed, and the company in search of savings on sales and marketing, it might go some way towards explaining any decision to hold such a sizable layoff.
Uber did not respond to a request for comment from Business Insider.
Rebecca Ungarino and Graham Rapier contributed to this report.