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.
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.
———————————————————————
Visit my consulting website - www.ryansconsulting.com
Visit my personal website - www.holmesryan.com
Visit my Facebook - https://www.facebook.com/Ryan.Entrepreneur
About Ryan - https://www.holmesryan.com