Business Travel Show Europe Kick Off, 23 February,
Global Travel Risk Summit Europe, May 2023,
3rd Annual Sustainable Business Travel Summit
Uber has announced it will make further job cuts to
counteract the financial impact of the coronavirus pandemic, with the firm
aiming to reduce spending by US$1 billion.
The latest announcement affects 3,000 more jobs at the firm,
bringing the total reductions to a quarter of the workforce when added to the
3,700 layoffs announced earlier this month. In addition, the company is closing
or consolidating more than 40 offices over the next year and will be ceasing
operations in some business units, such as its artificial intelligence lab.
The move will not impact Uber’s drivers, who are considered
self-employed independent contractors.
CEO Dara Khosrowshahi said in a letter to staff: “We must
establish ourselves as a self-sustaining enterprise that no longer relies on
new capital or investors to keep growing, expanding and innovating.
“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.”
Uber said the number of rides it saw in April dropped 80 per
cent and while demand for its Uber Eats food delivery division has soared
during global lockdowns, it is still a loss-making business.