Uber Cuts 3,000 Jobs as Pandemic Crushes Ride-Hailing Demand
Uber lays off about 3,000 employees and closes dozens of offices worldwide as the coronavirus pandemic severely reduces its core ride-hailing business. The company also considers selling off unprofitable divisions to conserve cash.
Uber cuts approximately 3,000 jobs and closes 45 offices around the world as the coronavirus pandemic devastates its main ride-hailing business. This latest round of job cuts affects about 14% of the company's workforce and follows a previous round of layoffs that eliminated 3,700 customer support and recruiter roles. CEO Dara Khosrowshahi announces the cuts in an email to employees, noting that the company faces a severe crisis that requires dramatic cost reductions.
The dramatic drop in trip volumes forces Uber to reevaluate its overall business strategy and restructure its operations. With people staying home due to lockdown orders and health concerns, the demand for rides plummets to a fraction of normal levels. Khosrowshahi acknowledges that the pandemic fundamentally alters the company's trajectory and requires tough decisions to ensure long-term survival.
Beyond the immediate layoffs, Uber explores options to sell off or shut down entire business units that struggle to turn a profit. The company groups these non-core divisions into a category called "Other Bets," which includes expensive side projects like its flying car division and job recruitment platform. By shedding these costly ventures, Uber aims to conserve cash and focus its remaining resources on its core ride-hailing and food delivery services.