In addition to Uber’s 3,700 initial lay off, Uber is laying off another 3,000 employees and closing down 45 offices around the world.
Uber CEO Dara Khosrowshahi, wrote a memo on 18th May to their employees saying “I had to make this decision because our very future as an essential service for the cities of the world — our being there for millions of people and businesses who rely on us — demands it. We must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing, expanding, and innovating.”
It is reported from a valid reliable source that Uber is rethinking its approach in areas like freight and autonomous vehicle technology as a result of the Coronavirus world pandemic.
The new Uber CEO, Khosrowshahi who was appointed in 2017 have layed off about 25% of its workforce since the coronavirus pandemic outbreak. This lay off have nothing to do with Uber drivers as they are not currently classified as employees but rather independent contractors
I knew that I had to make a hard decision, not because we are a public company, or to protect or stock price, or to please our Board or investorsUber CEO, Khosrowshahi
The world popular ride hailing company, Uber have about up to $145 million to pay employees as part of layoffs via severance and other benefits, and up to $80 million in order to shut down offices.
While about 80% of Uber are down, the food delivery however have been hot. In as much as the Food delivery is accelerating Uber made it known that they are not close in recovering their expenses.
I have every belief that the moves we are making will get Eats to profitability, just as we did with Rides, but it’s not going to happen overnight.Uber CEO, Khosrowshahi
In an attempt to organize more around its core offering, Uber is shutting down Incubator after less than one year of launch. Most Uber drivers nevertheless have been very vocal on the internet demanding more benefits and protection.