(Bloomberg) -- Uber Technologies Inc. said it's cutting a third of its marketing department globally, as the chief executive officer seeks to address concerns that the business is slowing down.
The ride-hailing company will dismiss about 400 employees. Dara Khosrowshahi, the CEO, told employees of the changes in an email Monday.
โToday, there's a general sense that while we've grown fast, we've slowed down,โ Khosrowshahi wrote in the email reviewed by Bloomberg. โThis happens naturally as companies get bigger, but it is something we need to address, and quickly.โ
Uber went public in May and currently trades just below the IPO price. The San Francisco-based company and its hometown rival, Lyft Inc., are under pressure from investors for heavy losses. Bloomberg also first reported on Monday that Lyft is parting ways with its chief operating officer, Jon McNeill, after less than two years on the job.
The staff reduction represents about 1.6% of Uber staff globally. It's the first major reorganization of the marketing and communications arm since Jill Hazelbaker, a longtime executive, took control of the group last month. She succeeded Rebecca Messina, the former chief marketing officer who oversaw a team of about 1,200 during her nine-month tenure with the company.
โMany of our teams are too big, which creates overlapping work, makes for unclear decision owners, and can lead to mediocre results,โ Khosrowshahi wrote to staff. โI'm here to win a race that really, really matters.โ
To contact the reporter on this story: Eric Newcomer in New York at enewcomer@bloomberg.net
To contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Molly Schuetz
ยฉ2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories โ On NDTV Profit.
