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Ground Transport

Uber to cut 3,000 more jobs

By Molly Dyson / 19 May 2020 / Contact Reporter
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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.

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