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Uber to cut 3,000 more jobs and close 45 global offices

By Ramla Soni

14:37, 19 May 2020

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UBER
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30.14 USD
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UBER
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30.14 USD
-0.33 -1.090%

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Uber has said it will cut 3,000 more jobs, close or consolidate 45 global offices, and reduce its investments in several “non-core” projects as it comes to terms with the coronavirus pandemic.

This in addition to the 3,700 job losses announced earlier this month. The workforce cuts do not include drivers, whom Uber considers independent contractors.

Since the coronavirus crisis took hold, the ride-sharing giant has planned cuts of more than a quarter of its global workforce, leading to an annual saving of $1bn (£818m, €913m).

Uber’s share price rose by more than 8 per cent on the news.

"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,” the company’s chief executive Dara Khosrowshahi wrote to staff.

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The number of Uber rides dropped 80 per cent last month at the height of the lockdowns in the US and Canada. Meanwhile, although its Uber Eats food delivery business has surged, it remains loss-making.

Khosrowshahi described Uber Eats as the company’s next “enormous growth opportunity”. The company is in talks to acquire rival food delivery platform Grubhub, though any potential deal has already alerted regulators concerned about competition. 

The office closures include one of its locations in San Francisco, and the winding down of its Singapore office in favour of a new Asia-Pacific hub, in a location yet to be determined.

Following the lead of Airbnb, which announced a 25 per cent workforce reduction earlier this month, Uber said it would create a talent directory for employees leaving the company as well as severance packages.

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