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Uber decides to lay off 3,000 more jobs and focus on delivery business

Uber decides to lay off 3,000 more jobs and focus on delivery business
Uber decides to lay off 3,000 more jobs and focus on delivery business

Uber has recently confirmed about 3,000 job cuts again as the firm brings its focus on the core business that mostly concerns food delivery and ride-hailing services. The recent announcement takes the overall downsizing of the workforce to about 23% or 6,700 employees, in a serious effort to limit the losses incurred by the pandemic spread.

Apparently, Uber had previously announced the laying off of about 3,700 employees from the customer support and also the recruiting teams belonging to the first phase of various countermeasures the firm had planned. However, the job cut has an impact on almost all the departments in a certain move that could lower the investment in a number of non-core projects.

Uber also wants it's firm to be a sustainable establishment without needing any outside capital. Under the regulatory filing that was published recently, the firm estimated that it needed measures for restructuring in order to generate $1 billion in yearly savings.

These measures mainly include a strategic alternative to the Uber Works, consolidating, or even closing about 45 office locations around the world and the closure of the AI research lab and startup incubator program. 

Dara Khosrowshahi, the Chief Executive of Uber commented that the firm has been back to focusing on Uber Eats, the food delivery app. The demand for Uber Eats has risen to 50% within the first quarter after the stay-at-home orders that have been imposed upon the people by governments across. He claimed it as the next major opportunity for growth.

According to reliable sources, the ride-hailing sector has dipped considerably after the shutdowns across the world in order to curb the spread of the virus. The company’s revenue from the ride-hailing tips had dropped by up to 80% worldwide in the month of April.

Lyft, Uber’s rival had cut off 17% of the overall workforce as the spread of coronavirus emancipated its business.

 

Source Credit- https://www.publicwire.com/uber-adds-another-3000-layoffs-realign-focus-on-rides-delivery-business/

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.