Yesterday, news broke that Uber laid off 400 employees, most of which were in their marketing departments. While this doesn't pose a legal issue on the forefront, LegalRideshare has some thoughts on what it means for the company and drivers in general.
- Because CEO Dara Khosrowshahi combined the company's marketing, communications and policy teams there's going to be a lot of miscommunication and lost intel. These issues will trickle to other departments, such as those handling driver concerns.
- Because 400 people were laid off suddenly, offices will scramble to reorganize and determine roles for each head of their team. Less employees means heavier workloads, and it also means resolving deactivations may take longer.
- Any PR crisis in the future, will be harder for them to control. As we know best, when there's an issue with Uber it often makes national news.
- They said they're trying to build a consistent brand, but in many cases Uber's marketing is hyper local, and strategy is really location-based
(Example: Uber driver in Chicago versus driver in Utah).
- Drivers already feel disregarded, with Uber aiming on a generalized message will mean it feels even less personal.
These are just some of our thoughts on the impact of laying off 400 employees overnight. As time goes on, we'll obviously see the full implications.