This isn’t bad news. This is exactly the sort of cost cutting and fat trimming a company in Uber’s position should be performing. From a tactical standpoint, Uber’s IPO acts as a promise to Wall Street that they will continue their existing business while slimming down their books.

From a strategic position, it’s not as great. Uber’s rivalry with Lyft is a war of attrition: given that the two services are perfect complements, right down to the drivers themselves working both networks simultaneously, growth is entirely a function of platform-level economics. While Uber is wise to cut corporate costs before materially cutting driver commissions or raising consumer prices, it’s not exactly a show of strength to be scaling back marketing and engineering, the very departments that Uber needs to continue growing.

That being said, the size of Uber’s war chest doesn’t make me worry about their ability to continue operating. If I had to prognosticate, though, I’d say this is a sign that Uber is going to be posting some rough results for a couple quarters.