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Uber is laying off another 435 people to stem large losses



  An Uber car.

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Uber has laid off 435 people in engineering and product roles, the company's latest effort to curb rising losses. Uber laid off about 400 people in the marketing department in July.

"In the past, we employed quickly and in a decentralized way to meet the requirements for a hyper-growth startup," Uber said in an email to employees. "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 change how we design our organizations."

Uber says the layoffs make up about 8 percent of the engineering and product force. The two layoff rounds make up about 3 percent of the company's workforce. Techcrunch reports that 85 percent of layoffs were in the United States.

At the same time, Uber is lifting the hiring freeze that was created last month.

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

9. This figure exaggerates the extent of Uber's burn rate because the majority of it reflects one-time expenses related to the Uber IPO. But even if you ignore these expenses, Uber still burns cash at a rate of more than $ 1 billion per quarter.

Fortunately, Uber still has plenty of cash in the bank. The company added $ 8 billion to the cash stack in the IPO in May and as a result had $ 13.7 billion in the bank at the end of the second quarter.


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