Uber has shut down a client support office in Los Angeles, California, and transferring around 80 personnel to the Philippines, The Times reported.
The move comes after the ride-hailing company disclosed it will be shifting its profitability goal by end of the year. The staff were notified on Thursday that their positions would be moved to a customer support office that Uber operates in Manila, the Los Angeles Times said.
Sources told the Times that the employees were not notified in advance that their positions would be transferred to a larger customer support office in the Philippines.
The Times also disclosed that a big portion of the staff are hourly-paid customer support personnel who focus on driver outreach like resolving account issues and explaining the company's promotions and incentives.
The report said Uber manager Ruffin Chevaleau acknowledged that the meeting was held on short notice prior to the announcement of the layoffs.
Since Uber went public in 2019, drivers in the Los Angeles area and parts of Orange County say their salaries have been reduced and prices for passengers have increased after California's so-called new gig worker policy was implemented this year.
Uber said it lost $1.1 billion in the last three months of 2019, even as sales soared 37 percent to $4 billion and the volume of trips made on its platform climbed by almost 30 percent.
Chief executive Dara Khosrowshahi said he was happy with the progress Uber is making toward sales growth.
In January, Uber sold its loss-making food business in India to rival Zomato, in exchange for a share in the start-up. That same month, rival Lyft announced it will layoff 90 workers from its enterprise sales and marketing units.
With investors growing aware of mounting declines on public markets, the two ride-hailing firms have announced they were focusing on attaining sustainable growth.
In London, the ride-hailing company's license has been revoked following concerns over failures in its safety features.
Since its New York Stock Exchange debut in 2019, Uber shares have been under a cloud, as venture capitalists became worried of the company's losses as it faces regulatory obstacles around the world.
Uber reportedly conducted more than 15 million rides in New York City alone in December last year, up 0.5 percent from the previous year. At the same time, its competitor, Lyft, had 5.4 million trips, up 15.5 percent. Uber generated 45.3 million New York trips, up 2.3 percent for the entire fourth quarter.
