Shares of Uber (UBER) accelerated Tuesday after a report said the ride-hailing giant is laying off hundreds of engineers and product development specialists.
Uber's stock jumped 3.9% to $33.51 after TechCrunch reported that Uber on Tuesday laid off 435 staffers: 265 from its engineering team and 170 in product development.
The layoffs come on the heels of Uber's recent purge of its marketing department, with 400 employees getting pink slips in that round of cuts.
Chief Executive Dara Khosrowshahi got the latest round of layoffs going after asking members of Uber's executive leadership team, "if they were to start from scratch, would their respective organizations would look like the way they do today?" TechCrunch reported.
"After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no," the news service reported, citing a statement from Uber.
Uber has posted losses of $5.4 billion so far in 2019. The results included $298 million for a driver-appreciation award connected to the San Francisco company's recent public offering and $3.9 billion in stock-based compensation expenses, the company said in its earnings report.
Uber is also now facing the prospect that California legislators will require the company to reclassify its drivers as employees instead of independent contractors, a move that would sharply increase expenses.