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Uber cuts 3,000 more jobs as gig economy suffers in lockdown

Uber is cutting a further 3,000 jobs as the ride hailing app is hit by the second wave of major lay-offs at the company in just two weeks.

Uber cuts 3,000 more jobs as gig economy suffers in lockdown

It adds to the 3,700 cuts it announced earlier this month, with the total amounting to nearly a quarter of its workforce. The job losses come after lockdowns across the world due to the coronavirus pandemic slashed demand for its ride-hailing app, with the number of trips dropping by 80% in April.

Uber will be closing or merging 45 offices across the world and almost all of its departments will be hit by lay-offs.

Chief executive Dara Khosrowshahi said in a note to employees that the company is to re-focus on its core ride-hailing app and takeaway delivery platform Uber Eats.

It is shutting its business for developing products and services and a unit working on artificial intelligence, while also looking at options for its job recruiting app, Uber Works.

Khosrowshahi said: “This is a decision I struggled with. Our balance sheet is strong, Eats is doing great, Rides looks a little better, maybe we can wait this damn virus out… I wanted there to be a different answer… but there simply was no good news to hear. Ultimately, I realised that hoping the world would return to normal within any predictable time frame, so we could pick up where we left off on our path to profitability, was not a viable option.”

Uber reported a loss of $2.9bn for the first quarter, mainly due to a sharp reduction in the value of its overseas investments. The company employed 28,600 people around the world before the pandemic – a figure not including the 3.9 million drivers on its platform globally, who are treated as contractors.


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