appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Agence France-Presse

Uber on Monday announced it is cutting a quarter of its global workforce and trimming investment to survive the financial hit to its business from the coronavirus pandemic.
The San Francisco-based company is laying off about 3,000 people and stopping some investments unrelated to its core ride-share and delivery businesses, according to chief executive Dara Khosrowshahi.
“Given the dramatic impact of the pandemic, and the unpredictable nature of any eventual recovery, we are concentrating our efforts on our core mobility and delivery platforms and resizing our company to match the realities of our business,” Khosrowshahi said.
Overall staff cuts include lay-offs earlier this month at Uber recruiting and customer support teams, and are part of a reorganisation keeping ride-share and Eats restaurant-meal delivery services priorities at the company.

“We are making these hard choices now so that we can move forward and begin to build again with confidence, Khosrowshahi said.
Job cuts are to be spread across Uber operations around the world.
Uber planned to provide laid-off workers with at least 10 weeks pay and continue providing health benefits through the end of this year.
The company did not respond to an inquiry whether lay-off news was delivered to employees via videoconferencing.
Uber is closing or consolidating offices at various locations, including merging two facilities in its home base of San Francisco. The company also planned to close its office in Singapore in the coming year and relocate its Asia-Pacific base of operations.
Teams at Uber are being reorganised, with Andrew Macdonald to head a “mobility” team that will include transit and Pierre-Dimitri Gore-Coty taking charge of a “delivery” team.
Uber is closing its AI Labs special projects team.
“We are taking a hard look at our overall cost structure and our other bets to ensure our core business of Rides and Eats emerges stronger than ever,” Khosrowshahi said on Uber’s recent quarterly earnings call.
Uber said in its quarterly update that it lost nearly US$3 billion and its rides business was down some 80 per cent in April.
The rideshare giant noted, however, that it was seeing strong revenue growth for its Eats food delivery operation.
Uber reported 53 per cent revenue growth in its Eats restaurant takeaway delivery service in the first three months of this year, as more people ordered in to avoid the coronavirus.

Eats revenues rose to US$819 million, about one-third of the total for Uber in the quarter.
“There’s been a tremendous increase in restaurant sign-ups,” Khosrowshahi said during an earnings call with analysts.
“We believe these trends are here to stay.”
With a network of app-summoned drivers, Uber is in position to expand into delivering groceries, medicine, retail purchases and more with minimal investment, Khosrowshahi said.
An IBM survey released this month found more than half of those who used ride-sharing apps planned to reduce or stop using these services completely.
Meanwhile, some analysts felt ride-share services or bicycle and scooter options such as those offered by Uber might benefit from people wanting to avoid mass transit while getting around.
Amazon defends practices as virus crisis boosts profit and power
It said earlier this month it was leading a US$170 million investment in Lime as part of a plan to merge its Jump electric bike and scooter operations into the rival service.
The tie-up will free Uber to concentrate on its core rideshare and delivery services while Lime – which operates in some two dozen countries – will manage scooters and bikes including the Uber Jump fleet.
“The reality is the world has changed, so we don’t know when the recovery is going to be,” Khosrowshahi said during the earnings call.
“We are going to take the actions that we think are necessary.”


Hong Kong’s Peninsula Hotels sees ‘bleisure’ boom after pandemic curbs, CEO says

US could require US$15,000 bonds for some tourist, business visas

China’s Shenzhen, Guangzhou airports hit record highs, surpass pre-Covid passenger levels

Landmark US Chinatown survived Covid, anti-Asian violence – but tariffs pose new threat

Coronavirus pandemic

Coronavirus: Uber to cut quarter of global workforce and scale back investment

A worker cleans a sign in front of the Uber headquarters in San Francisco, California. Photo: AFP

FILE PHOTO: A passenger enters an Uber car in New York City, New York, U.S., December 6, 2019. REUTERS/Jefferson Siegel/File Photo

SAN FRANCISCO, CALIFORNIA - MAY 18: A pedestrian walks by a sign in front of the Uber headquarters on May 18, 2020 in San Francisco, California. Uber announced plans to cut 3,000 jobs and shutter or consolidate 40 offices around the world due to severely declining business as the coronavirus (COVID-19) pandemic continues. The cuts come two weeks after Uber cut 3,700 employees. Justin Sullivan/Getty Images/AFP == FOR NEWSPAPERS, INTERNET, TELCOS & TELEVISION USE ONLY ==

Amazon defends itself from scrutiny as coronavirus crisis boosts profit and power

Amazon CEO Jeff Bezos. File photo: AFP

FILE PHOTO: An Amazon worker delivers packages amid the coronavirus disease (COVID-19) outbreak in Denver, Colorado, U.S., April 22, 2020. REUTERS/Kevin Mohatt/File Photo GLOBAL BUSINESS WEEK AHEAD

A message painted by activists can be seen on the street outside of one of the personal residences of Amazon.com Inc founder Jeff Bezos during the outbreak of the coronavirus (COVID-19) disease in Washington, U.S., April 29, 2020. REUTERS/Leah Millis

A protester in Hawthorne, California. File photo: AFP

Uber to require drivers, riders to wear masks around the world as coronavirus restrictions ease

Uber is making face masks mandatory for drivers and passengers as part of new health and safety protocols aiming to instill confidence in the ride-hailing service as people emerge from coronavirus lockdowns. Photo: AFP

News

World

United States & Canada

Coronavirus

Economic Impact

US & Canada


The ride-hailing giant is to shed some 3,000 jobs, according to company chief executive Dara Khosrowshahi



The ride-hailing giant is to shed some 3,000 jobs, according to company chief executive Dara Khosrowshahi.


Coronavirus: Uber to cut quarter of global workforce and scale back investment

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} The ride-hailing giant is to shed some 3,000 jobs, according to company chief executive Dara Khosrowshahi

The ride-hailing giant is to shed some 3,000 jobs, according to company chief executive Dara Khosrowshahi