Uber is laying off hundreds of staffers, again

About 435 positions eliminated

By Sara Ashley O'Brien, CNN Business
Justin Sullivan/Getty Images

(CNN) - Uber laid off hundreds more employees -- this time, across its engineering and product teams in an effort to "reset."

The company confirmed to CNN Business Tuesday that about 435 positions -- 170 in its product team and 265 on its engineering team -- were eliminated. The company said the layoffs represent about 8% of the product and engineering teams. Notably, the layoffs did not impact product and engineering staffers working on its growing meal-delivery business known as Eats.

The news, first reported by TechCrunch, comes as the company faces pressure to clean up its finances following a lackluster Wall Street debut in May. The company has a history of steep losses and its revenue growth is slowing. Uber's stock rose around 4% following the news, but is off about 25% from its initial pricing.

The move represents the second round of cuts at the newly-public company in just six weeks. Days before its most recent earnings report in late July, Uber laid off roughly one-third of its global marketing staff, or roughly 400 people. At the time, CEO Dara Khosrowshahi positioned the restructuring as an effort to make operations more efficient. "There's a general sense that while we've grown fast, we've slowed down," Khosrowshahi said in an email to staff at the time seen by CNN Business.

The new layoffs appear in line with that sentiment. According to a statement from an Uber spokesperson, Khosrowshahi tasked Uber's management team with answering a question: "If we started from scratch, would we design our organizations as they stand today? After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no."

Tuesday's layoffs were positioned as helping Uber "get back on track."

"Previously, to meet the demands of a hyper-growth startup, we hired rapidly and in a decentralized way," the statement continued. "While this worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to shift how we design our organizations: lean, exceptionally high-performing teams, with clear mandates and the ability to execute faster than our competitors."

The company lifted a hiring freeze as of Tuesday but declined to comment on whether other departments are being reviewed for layoffs.

The-CNN-Wire ™ & © 2019 Cable News Network, Inc., a Time Warner Company. All rights reserved.