On Tuesday, the ride-hailing company said in a statement that they have eliminated 265 positions from its engineering team and 170 from its product team, around 8% of the two teams.
The move is said to be part of an attempt to centralise control and remain competitive following a shake-up of the marketing department in July where 400 positions were cut.
At the same time, California legislators have approved a landmark bill that requires companies like Uber and Lyft to treat contract workers as employees.
The bill passed in a 29 to 11 vote in the State Senate and will apply to app-based companies, despite the efforts made to negotiate an exemption.
In California, the said legislation will affect at least one million workers who have been on the receiving end of a trend of outsourcing and franchising work.
Uber’s share price has dropped from $42.97 on August 8th to $33.51 yesterday September 10th.
Photo: Tero Vesalainen