[tylerhou]

Yes, minus engineering and marketing, they are profitable for now (https://news.ycombinator.com/item?id=23382477), but it's not a good idea. Growing revenues is much better, especially since Uber has competitors who are also trying to grow.

[urthen]

I don't know what companies you've been working for, but even if you do zero product research and development, a company as tech-focused as Uber is still going to need a substantial engineering department just to keep the lights on. Not to mention a tech company that isn't developing new products and features, and isn't marketing, isn't going to remain profitable for long no matter how much they've cut labor costs.

I understand that they're investing in growth, but the key points still stands - money is flowing down the drain with the promise that it'll all be worth it "some day."

[tylerhou]

> a company as tech-focused as Uber is still going to need a substantial engineering department just to keep the lights on.

Which is why I initially estimated keeping 20% of engineers. Then Uber would be slightly profitable in the short term, pre-coronavirus.

[braythwayt]

This is all speculative, of course, so you are entitled to your beliefs based on your views and experience.

In my case, I have often seen the case that companies have certain stable modes, and many unstable modes. It could easily be that after slashing 80% of their engineering workforce, and cutting their marketing, they subside into becoming a slightly higher-tech taxi company.

But what about the remaining 20% of engineering? Do they want to work for a company that has let go 80% of its engineers, and has given up on self-driving cars and drones and whatever else they were dreaming of?

Or will the rest of the talent head for the exits, their options hopelessly underwater forever, because investors have no interest in the faded hulk of a company that was once a Unicorn?

It could be that if they try to shrink to 20% of their engineering talent, they keep on shrinking involuntarily, shedding their best talent in all areas, not just engineering.

I don't know for a fact what will happen, but for the moment, if I had to bet, my bet is that if they try to cut 80% of their engineering and most of their marketing, they will keep on shrinking until they become a penny stock.

It would probably be easier for them to have Private Equity come in and take the company private first. If they have to cut that much flesh off the bones in public, it's going to be brutal.