Ride-hailing company, Uber, is reducing its 1200 strong global marketing team by 400, in order to bring down costs and do away with overlapping work. Apparently, the Company has several oversized teams, which is leading to not just unnecessary overlapping in terms of work, but also decision-making, and poor results.
Post downsizing, the marketing unit will be reorganised and will have a more centralised structure.
In March this year, Uber had a workforce strength of 24,494 globally. It experienced the slowest growth in the first quarter, losing about a billion dollars. Its income in the second quarter is yet to be revealed.
Uber’s stock fell by almost eight per cent post its initial public offering a couple of months back. It seems that becoming a publicly traded company has only added to its challenges, because ever since the IPO its share prices have remained around $45, that is, its IPO price.
As if that were not enough, three board members quit the Company along with the chief operating officer and chief marketing officer.
With two senior people retiring too, the Company has recently undergone a reshuffle.
Post its IPO, the Company has made many changes to its leadership team in a bid to get back on track. The Company also combined its marketing, communications, and policy teams last month.