Uber Reportedly Plans to Cut 3,000 Workers and Close 45 Offices

Uber reportedly will cut 3,000 staffers and close 45 offices. It now has dropped 23% of its employees over two layoffs this month.
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Ride-hailing and food-delivery giant Uber  (UBER) - Get Report, which laid off 3,700 workers earlier this month, reportedly plans to cut another 3,000 and close 45 offices.

The company also is reconsidering its hefty investments in segments including freight and automated driving technology, according to an email from Chief Executive Dara Khosrowshahi to Uber workers obtained by The Wall Street Journal.

The coronavirus pandemic has hammered Uber and its rivals, keeping would-be riders at home.

Uber ended March with 28,600 workers. So this month’s moves add up to a 23% reduction. When job cuts going back to last year are taken into account, about 9,000 employees will have left, based on numbers from Business Insider.

Drivers aren’t included in the tallies because they aren’t employees. Ride-hailing accounted for 75% of the company’s revenue before the pandemic.

Uber posted a first-quarter loss of $2.94 billion, or $1.70 a share, compared with $1.01 billion, or $2.26, in the year-earlier quarter.

“We’re seeing some signs of a recovery, but it comes off of a deep hole, with limited visibility as to its speed and shape,” Khosrowshahi wrote to Uber workers.

Uber Eats, the company’s food-delivery service, has performed well during the pandemic, he said. But it “doesn’t come close to covering our expenses.”

Uber is negotiating a deal to buy rival food-delivery service Grubhub  (GRB) , but an agreement isn’t ensured.

Uber shares stood at $34.75 at last check, up 7%. The stock has dropped 12% in the past three months, matching the slide of the S&P 500.