Asianet News English

Uber to lay off 3,000 more employees in second round amid coronavirus crunch

Uber has announced to cut several thousand additional jobs, closing more than three dozen offices and re-evaluating big bets in areas ranging from freight to self-driving technology as CEO Dara Khosrowshahi attempts to steer the ride-hailing giant through the coronavirus pandemic

Uber to lay off 3,000 more employees in second round amid coronavirus crunch
Author
San Francisco, First Published May 19, 2020, 12:29 PM IST
  • Facebook
  • Twitter
  • Whatsapp

San Francisco: Uber Technologies Inc (UBER.N) will concentrate on its core businesses in ride-hailing and food delivery and cut 23% of its workforce in an attempt to become profitable despite the coronavirus pandemic, chief executive officer Dara Khosrowshahi said in an email to employees on Monday.

Uber will cut a total of 6,700 jobs, including the 3,700 it had announced earlier this month via a Zoom call that lasted for a little over three minutes, Khosrowshahi said, adding that the company plans to reduce investments in several “non-core projects”.

"We have made the incredibly difficult decision to reduce our workforce by around 3,000 people, and to reduce investments in several non-core projects," Khosrowshahi wrote in a letter to employees on Monday, Xinhua news agency reported.

Uber is also closing or consolidating some 45 offices globally, including its Pier 70 office in San Francisco, a branch responsible for its experimental projects like self-driving cars. Over the next 12 months, it will begin the process of moving its Asia-Pacific headquarters out of Singapore to a new location "in a market where we operate our services," according to the company.

The firm will reduce its costs by over $1 billion a year by these actions, the company said.

Shares in Uber were up 6.9% to $34.69 following the announcement.

Uber employed 28,600 people before the pandemic crippled its business, according to a regulatory filing at the end of the first quarter. The company’s initial wave of 3,700 layoffs affected less-costly customer support and recruiting teams, while Monday’s announcement affects 3,000 employees across nearly all departments.

Follow Us:
Download App:
  • android
  • ios