Uber Cuts 3,000 More Jobs and Closes 45 Offices Amid Pandemic
Uber lays off an additional 3,000 employees and shuts down 45 global offices as the company attempts to become a self-sustaining business. These cuts come just weeks after a previous round of 3,700 layoffs.
Uber cuts an additional 3,000 jobs and closes 45 offices as the company reshapes its business during the COVID-19 pandemic. CEO Dara Khosrowshahi states that these difficult decisions are necessary to transform Uber into a self-sustaining enterprise that no longer relies on new investor capital. The company expects to pay up to $145 million in severance and $80 million in office closure costs.
These latest layoffs follow a previous round of 3,700 job cuts just weeks ago, meaning the company reduces its workforce by about 25% overall since the pandemic begins. The core rides business suffers heavily with trip volumes dropping around 80%, though the Uber Eats food delivery segment sees massive growth with gross bookings reaching $4.68 billion in the first quarter.
Despite the strong food delivery numbers, Khosrowshahi cautions that the Eats division does not yet cover its own expenses. To accelerate its dominance in this space, Uber is currently in talks to acquire GrubHub, with a potential deal possibly finalizing this month. Additionally, Uber shuts down several side projects, including its Incubator program, AI Labs, and the Uber Works staffing service.