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400 people at say 40k salaries or around 80k with benefits is around 32 million. Definitely a significant chunk of change, but barely scratching the surface for offsetting 1B in losses.
You think Uber employees are only making $40k???
From a non-paywalled source (1): 1) These cuts appear to be exclusively in the marketing department taking department from 1,200 to 800 - that is a BIG ASS cut of 33% [EDIT from 25%]. 2) Seems like this was a warning shot by CEO Khosrowshahi who comments "[M] any of our teams are too big, which creates overlapping work, makes for unclear decision owners, and can lead to mediocre results." - I'd be doing my best work…
That's 33% actually. And while that's a huge cut, that's also an absurdly large marketing team. There's a reason most big companies hire agencies to do marketing. It's not their core business and you can roll over staff willy-nilly without affecting your head count.
Uber operates in >600 major cities across the world at this point.
1200 employees would indicate about 1 person per market per side of the market.
Profitability doubts after the IPO? Everyone in the world knew they were never close to profitability pre-IPO, this is just the reality of being a publicly traded not profitable company. Can't funding round yourself out of this one anymore.
They’ll say “saudi investors bought into secondary offering at X share price” instead of “round completed at Y valuation!!!” Which is just X share price of last purchase multiplied by total shares in existence
Public companies can do secondary offerings from treasury or from creating brand new shares from nothing (dilution)
Liquidity is one of the benefits
It seems to me that they have a lot of physical growth, so what is happening to their finances?
Earlier quoted context omitted.
That's 33% actually. And while that's a huge cut, that's also an absurdly large marketing team. There's a reason most big companies hire agencies to do marketing. It's not their core business and you can roll over staff willy-nilly without affecting your head count.
In a two sided marketplace customer acquisition and marketing are absolutely fundamental. Uber operates in >600 major cities across the world at this point. 1200 employees would indicate about 1 person per market per side of the market.
I fully admit that I'm not in marketing, so there are surely nuances I don't know. But that scale of marketing department is orders of magnitude above any other place I have worked, with the possible exception of IBM in the 90s. Just maybe... this was a reasonable move.
Does anyone have any idea why Uber isn't profitable? I never really understood that. It's such a ubiquitous service in a large portion of the world. It seems to me that they have a lot of physical growth, so what is happening to their finances?
Does anyone have any idea why Uber isn't profitable? I never really understood that. It's such a ubiquitous service in a large portion of the world. It seems to me that they have a lot of physical growth, so what is happening to their finances?
They've been doing this to grab market share for the last decade. Undercutting competition is not a profitable business.