Uber Technologies Inc. is rsaving 3 thousand additional jobs, closing 45 offices and reevaluating large bets in areas ranging from freight to autonomous driving technology, the newspaper revealed. The Wall Street Journal. Read Uber: will you or will you not charge 16% user tax?
The publication indicated that the company’s chief executive Dara Khosrowshahi announced the plans in an email to staff on Monday, less than two weeks after the company said it would cut some 3,700 jobs and planned to save more than $ 1 billion. dollars in fixed costs.
The world is upside down. Who would imagine that the company that helps move people today asks its users to stay home. [cont…] pic.twitter.com/TMyWRD7dcU
– Uber Mexico (@Uber_MEX)
April 9, 2020
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The decision means that Uber is eliminating about a quarter of its workforce in less than a month. Drivers are not classified as employees, so they are not included, the newspaper noted.
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Orders to stay home have devastated Uber’s core passenger transportation business, which accounted for three-quarters of the company’s revenue before the pandemic occurred. Uber’s travel business declined 80 percent in April.
“We are seeing some signs of recovery, but it comes out of a deep hole, with limited visibility in terms of speed and shape,” Khosrowshahi said in his note to employees. Uber Eats has been a bright spot during the crisis, but “today’s business is not close to covering our expenses,” he added.
As part of the new changes, Uber will reduce the size of non-core companies. Khosrowshahi said the company is completing its product incubator and artificial intelligence laboratory, and is exploring “strategic alternatives” for Uber Works, which combines potential employers with workers.
The company is also re-evaluating businesses that burn cash, such as cargo and autonomous driving. Uber has spent hundreds of millions of dollars to advance autonomous driving research in recent years.
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Employees in the United States will be most affected by the cuts, according to a person familiar with the matter.
The newspaper said Uber is closing one of its offices in downtown San Francisco, which had more than 500 employees. It is also considering moving its Asia headquarters from Singapore to a different market.
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