Uber Technologies Inc. said today it has laid off 435 employees as the money-losing ride-hailing giant attempts to rein in costs following a staggering $5.2 billion loss in the second quarter.

The cuts consisted of 170 people from Uber’s product team and 265 people from its engineering team, according to TechCrunch. The layoffs are said to have exclusively been from the rail-hailing side of Uber’s business and did not affect Uber Eats, Uber’s rapidly growing food delivery business, or its burgeoning freight business.

Some 85% of the laid-off staff were in the U.S. ,followed by 10% in the Asia-Pacific region, with the remainder from Europe, the Middle East and Africa.

In a twist, the layoffs came after Uber Chief Executive Officer Dara Khosrowshahi asked Uber’s leadership team if they were to start from scratch, would their respective organizations look the way they do today?

“After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was ‘no,’” a spokesperson for Uber told TechCrunch.

Uber’s latest round of layoffs follows 400 people losing their jobs in the company’s marketing department in July. In that case, the employee purge followed the high-profile departure of Uber’s Chief Marketing Officer Rebecca Messina in June.

“This is some bad news coming out of Uber as the company continues to go through some bumpy roads since its IPO,” Dan Ives, an analyst at Wedbush Securities Inc., told Fortune. “This is not the news the street wanted to hear, and it speaks to the challenges the company is contending with.”

“Our hope with these changes is to reset and improve how we work day to day — ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility,” Uber said in a statement. “While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world.”

Uber, the company that was perhaps the original “unicorn,” used to describe a startup with a private valuation of more than $1 billion, has been troubled since it went public in May. The company floated at $45 per share and immediately dropped on debut. Uber briefly traded above its IPO price on June 28 but has headed south since, dropping as low as $30.70 on Sept. 3.

While still trading below its IPO price, the market welcomed the news of Uber’s layoffs. Shares in the company rose 3.9% in regular trading Tuesday to close at $33.51.

Photo: Pixabay