Uber lays off 400 marketing employees amid struggle to be profitable

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Uber is laying off about a third of its global marketing department and it could mean riders and drivers might see fewer promotional offers.

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The ride-hailing company announced Monday it will lay off 400 workers from its 1,200-person marketing team.

Uber has struggled to prove it can become profitable and its stock has traded mostly below its IPO price since its debut in May.

The company has blamed its losses partly on its costly promotions to attract riders and drivers. Those promotions are crafted by its marketing department.

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Uber did not immediately respond to FOX Business’ request for comment on if and how the layoffs could affect promotions that it offers riders and drivers.

The layoffs follow a leadership shake-up in June when CEO Dara Khosrowshahi combined the company's marketing, communications and policy teams.

Dara Khosrowshahi, Chief Executive Officer (CEO) of Uber Technologies, speaks with the media in New Delhi, India, February 22, 2018. REUTERS/Saumya Khandelwal - RC1B6B676770

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In June, Khosrowshahi installed Jill Hazelbaker to lead up marketing and public affairs.

On Monday Uber announced a more centralized structure for marketing and said they want to build a consistent brand narrative across audiences, products and regions.

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Uber lost more than $1 billion in the three months of 2019 and its chief technology officer said it will likely be years before the company makes a profit.

FOX Business’ Jeff Durso and The Associated Press contributed to this report.