After announcing the layoff of 3,700 employees in early May, Uber will make another major cut in its staff
According to the American The Wall Street Journal, the company must close 45 offices and reassess non-essential experimental projects. With this action, it will reduce a quarter of its workforce in less than a month.
According to the publication, an email about the changes was sent by Uber CEO Dara Khosrowshahi. In the message’s content, he reveals that the company was well impacted by the covid-19 pandemic.
Compared to April 2019, there was an 80% drop in the number of trips on the app. Before the coronavirus advance, the activity corresponded to three quarters of the company’s revenue.
The Wall Street Journal points out that despite the growth of Uber Eats, it is not enough to make up for the big drop. In addition, even health measures to protect drivers and passengers do not guarantee an increase in travel anytime soon.
New strategies to help drivers
Khosrowshahi’s message to employees also reveals that Uber is exploring “strategic alternatives” for Uber Works in the U.S. The purpose of the tool is to help application drivers find jobs at other companies.
As stated, the company is reevaluating experimental projects. Thus, the executive said that he will close the new product incubator and the artificial intelligence laboratory. As well as, it will make a new analysis on the autonomous driving programs.
In addition to Uber, other companies providing electronic services are making major cuts. According to the American website Engadget, competitor Lyft should lay off 1,000 workers in the coming weeks. Meanwhile, Airbnb had to shut down almost 2,000 employees, 25% of its staff.