Uber cuts 3,000 more jobs, shifts focus to core business

Uber is laying off 3,000 employees more, as the company has seen an 80 percent drop in its ride-hailing business amid the COVID-19 pandemic.

Earlier this month, the company had cut 3,700 jobs. Uber CEO Dara Khosrowshahi told employees in an email on May 18th that: “We have to take these hard actions to stand strong on our own two feet, to secure our future, and to continue on our mission.”

To put things in perspective, Uber has laid off nearly a quarter of its staff in less than a month. As of December 31st of last year, Uber employed 26,900 employees around the world.

The company is also closing 45 offices globally, and is going to focus on its core business, which it says is to help people move and deliver things.

Uber Eats, the company’s food delivery service, has seen an increase in demand, as numerous people around the world have been adhering to shelter in place orders. The platform saw a 54 percent year over year increase in bookings. However, Khosrowshahi says that the gains aren’t going to be enough to make up for the losses brought by the decrease in ride-hailing.

“I will caution that while Eats growth is accelerating, the business today doesn’t come close to covering our expenses,” he told his employees in the email.

Uber’s rival, Lyft, has also reported that it is going to cut nearly 1,000 jobs, which shows that the ride-hailing industry is taking a severe, but expected hit due to the pandemic.

Source: Wall Street Journal Via: The Verge