Uber lost another 3000 employees, till now the company laid off around a quarter of its employees less in a month time. Uber will also close 45 of its offices around different places of the world. The company now rethinking in areas like cargo shipment and autonomous vehicle technology.
Uber Chief Executive Dara Khosrowshahi informed the staff about the changes through an email.
He said, “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,” we must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing, expanding, and innovating.”
The company is expected to pay up to $145 million to employees and up to $80 million for the purpose of closing its offices, according to SEC filing.
Uber lost off 3700 of its employees also just some weeks before, in order to save a cost of about $1billion. That was around 14% of its staff. The company has lost 25% of its workforce till now.
Since the COVID-19 pandemic hit, rides of the company go down about 80%, according to the company. The company is facing a hard time except for its Food delivery service. Uber Eats enjoys major growth of 52% from the same quarter of last year. It earned a revenue of $4.68 billion in the total during this period.
CEO Khosrowshahi said, “I will caution that while Eats growth is accelerating, the business today doesn’t come close to covering our expenses,”
For this purpose Uber wants to buy GrubHub to enhance its food delivery business. So Uber is in continuous talks with the food company to step up a deal.
Uber also closing its Incubator and AI Labs projects which was launched last September. And the reason is obvious, to focus on the primary service and to minimize expenses.
But the second reason can’t be justified as the Uber isn’t abandoning the company’s Advanced Technologies Group, responsible for its self-driving car program. CEO said that Uber’s pursuit of self-driving cars “has always been a long-term investment.”
Now the company decides to deal with the COVID-19 pandemic and to play safely. So Uber made it necessary for its riders and drivers to wear masks. The company also developing technology to make sure its divers comply.
But still, nobody is sure that this step will lead to more rides or not. Let the time decides.
