Ridesharing giant Uber (UBER) said Tuesday that it is set to lay off 435 employees, as the company seeks to cut costs due to profitability concerns.

Approximately 170 people were cut from the company's product team and 265 people were laid off from the engineering team.

"Our hope with these changes is to reset and improve how we work day to day – ruthless prioritizing and always holding ourselves accountable to a high bar of performance and agility," an Uber spokesperson said. "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 best talent around the world."

The moves follow the company laying off 400 of its marketing employees in July.

Uber lost $5.2 billion in the second quarter of 2019. The company had a disappointing IPO earlier this year.

Former CEO Travis Kalanick left the firm in 2017 due to numerous scandals, but some analysts believe that his "growth-at-all-costs" mentality was critical for the company's success.

Kalanick was replaced with Dana Khosrowshahi, who has defended the direction of the company under his leadership.

"The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company," Khosrowshahi told CNBC. "It's a big part of what made the company successful, and I absolutely think it will play a big part in making the company successful moving forward,"

Uber is available in 60 countries around the world, with an average of 17 million trips each day as of June.

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