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Uber fires another 435 people to stem huge losses



  An Uber car.

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Uber has fired 435 people in engineering and product functions in its recent efforts to curb growing losses. Uber fired around 400 people in its marketing department in July.

"We used to be fast and decentralized to meet the needs of a high-growth startup," the staff said in an email. "While this has worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to change our organizational structure."

According to Uber, the layoffs account for about 8 percent of the engineering and product workforce. The two layoff rounds together make up around 3 percent of the company's workforce. Techcrunch reports that 85 percent of the layoffs were in the US.

At the same time, Uber is lifting its hiring freeze set last month.

The cuts were necessary because Uber continues to surprisingly lose money rating. Uber reported a loss of $ 5 billion in the second quarter of 201

9. This figure outweighs Uber's burn rate, as most of the one-off costs associated with the Uber IPO are reflected. But even if you ignore these expenses, Uber still burns cash at a rate of more than $ 1 billion a quarter.

Fortunately, Uber still has enough cash in the bank. The company raised its cash pile at the IPO in May by $ 8 billion, and as a result, had $ 13.7 billion at the end of the second quarter.


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