Uber fires 400 people from marketing team in restructuring and Lyft loses its COO
It's been a rough road since the IPOs a couple months ago.
Uber laid off one-third of its marketing team — or 400 employees — as the company restructures months after its disappointing initial public offering (IPO). Separately, its rival Lyft reportedly lost a key executive as both companies struggle to answer to investors who want to see a profit.
Uber CEO Dara Khosrowshahi announced a new centralized structure for the company's marketing team internally, including news of the layoffs on Monday, a company spokesperson said.
Globally, the company currently employees about 25,000 people. Uber, as well as Lyft, does not consider drivers to be employees and they are not included in these numbers.
Uber became a publicly traded company in May, and in the run-up to its IPO, the company's business plans were scrutinized for their lack of a clear path to profitability. The stock lost 7.6% of its value on the first day of trade.
The following month, Khosrowshahi charged Jill Hazelbaker, previously senior vice president of policy and communications, with leading the marketing team. On Monday, he debuted a plan for a more consistent branding, the company said.
Meanwhile, Uber's rival Lyft saw a high-level departure as its chief operating officer Jon McNeill left the company, according to a notice filed with the Securities and Exchange Commission (SEC).
The news was first reported by Bloomberg. Lyft's co-founders will not replace him, Bloomberg said.
Lyft did not immediately respond to a request for comment on McNeill's departure.