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The company, headquartered in the US city of San Francisco, has cut a quarter of its workforce since the start of the year, leading to the exclusion of 3,700 people from the payroll earlier this month.
Uber CEO Dara Khusrawshahi said in a staff memo that the company would “refocus on its core business, which is transporting people and delivering food and groceries.”
The company is scheduled to close or merge 45 global offices, and almost all departments will be affected by layoffs.
Khasrouchai explained that the company will shut down its “incubator and artificial intelligence labs” and will pursue strategic alternatives to its own employment application “UberWorks”.
He added: “This is a decision I had difficulties with. Our budget is strong, Ets is doing a great job, and Rides looks a little better, maybe we can wait for this damn virus. I wanted a different answer, but there simply wasn’t good news to hear.”
He pointed out that the business of “Rides”, the main generator of Uber profits, had fallen by 80 percent, according to the Associated Press.
“In the end, I realized that the hope that the world would return to normal within any expected time frame, so that we could continue from where we left off on our path to profitability, was not a viable option,” he added.
Uber lost $ 2.9 billion in the first quarter, as the Corona virus pandemic destroyed its foreign investment.
Companies that rely on a participatory transportation system have been hit hard by the pandemic, as many people stay at home and stay away from common services to reduce infection.
Lift, the main rival to Uber in the United States, laid off 982 people last month, 17 percent of its workforce, due to lower demand. Uber’s “Cream” business in the Middle East has cut its workforce by 31 percent.
Uber estimates it will incur losses of 175 to 220 million dollars, including restructuring fees. Besides earlier layoffs, changes are designed to save $ 1 billion a year.
One of the good aspects, Khusraw -shahi explained, is that “Uber Eats’ business has become more important for people who are committed to staying home as restaurants close and delivery services continue,” but he cautioned that growth in Eates is not close to covering costs.
He continued: “I have every belief that the actions we are taking will make Eates achieve profitability, as we did with Rides, but it will not happen overnight.”
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The company, headquartered in the US city of San Francisco, has cut a quarter of its workforce since the start of the year, leading to the exclusion of 3,700 people from the payroll earlier this month.
Uber CEO Dara Khusrawshahi said in a staff memo that the company would “refocus on its core business, which is transporting people and delivering food and groceries.”
The company is scheduled to close or merge 45 global offices, and almost all departments will be affected by layoffs.
Khasrouchai explained that the company will shut down its “incubator and artificial intelligence labs” and will pursue strategic alternatives to its own employment application “UberWorks”.
He added: “This is a decision I had difficulties with. Our budget is strong, Ets is doing a great job, and Rides looks a little better, maybe we can wait for this damn virus. I wanted a different answer, but there simply wasn’t good news to hear.”
He pointed out that the business of “Rides”, the main generator of Uber profits, had fallen by 80 percent, according to the Associated Press.
“In the end, I realized that the hope that the world would return to normal within any expected time frame, so that we could continue from where we left off on our path to profitability, was not a viable option,” he added.
Uber lost $ 2.9 billion in the first quarter, as the Corona virus pandemic destroyed its foreign investment.
Companies that rely on a participatory transportation system have been hit hard by the pandemic, as many people stay at home and stay away from common services to reduce infection.
Lift, the main rival to Uber in the United States, laid off 982 people last month, 17 percent of its workforce, due to lower demand. Uber’s “Cream” business in the Middle East has cut its workforce by 31 percent.
Uber estimates it will incur losses of 175 to 220 million dollars, including restructuring fees. Besides earlier layoffs, changes are designed to save $ 1 billion a year.
One of the good aspects, Khusraw -shahi explained, is that “Uber Eats’ business has become more important for people who are committed to staying home as restaurants close and delivery services continue,” but he cautioned that growth in Eates is not close to covering costs.
He continued: “I have every belief that the actions we are taking will make Eates achieve profitability, as we did with Rides, but it will not happen overnight.”
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