Business

Uber lays off another 3,000 employees as 45 offices are closed

Announcement comes just weeks after Uber laid off 3,700 employees in order to save about $1 billion in costs

Uber CEO Dara Khosrowshahi
Uber's CEO sent a memo announcing the closing of 45 offices in an effort to stem coronavirus crisis. Photo: Shutterstock
  • Uber’s rides business was down 80% in April from a year earlier;
  • Even though Uber Eats has been seen a bright spot, it doesn’t come close to cover overall Uber’s expenses.

Global ride-hailing giant Uber is laying off another 3,000 workers, closing 45 offices and re-evaluating big bets in areas ranging from freight to self-driving technology as it has been affected by the coronavirus pandemic crisis, reported The Wall Street Journal. The company did not say where the offices will be closed.

Chief Executive Dara Khosrowshahi announced the changes in an email to staff on Monday. The company had already said it would eliminate about 3,700 jobs as it planned to save more than $1 billion in fixed costs.

Because of the stay-at-home orders Uber’s rides business in April was down 80% from a year earlier. “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,” Mr. Khosrowshahi said in his note to employees.

Even though Uber Eats has been seen a bright spot, it doesn’t come close to cover overall Uber’s expenses. Uber Eats division has left seven markets: Uruguay, Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, and Ukraine.

Uber is also in talks to buy Grubhub, as an effort that would help stem losses from the cost-intensive business of building out delivery operations, but, according to the media outlet, Khosrowshahi didn’t reference the potential deal in his memo.