Only about a week back, Uber had made headlines for the manner in which it had asked about 3,700 employees to leave, over multiple Zoom calls. Even before the employees involved in communications operations and in-person support could come to terms with what came across as massive downsizing, the ride-hailing company has announced a second round of job cuts. This time, all departments of the Company have been affected.
Uber has already done away with one fourth of its workforce. Now, it will be closing down or consolidating about 45 of its offices across the world, impacting each and every department. It will be shutting down its Incubator and aritificial intelligence (AI) labs and will look at other options for its job-recruiting app, Uber Works.
According to the CEO, the Company will now focus completely on its core business, that is, mobility of people and delivery of food and groceries.
This move seemed to be the only option left with Uber to maintain the strength of its balance sheet. The Group’s online food ordering and delivery platform, Uber Eats, is in a stable condition, as people have been using online food ordering services more during the lockdown. With eateries and restaurants being shut, Uber Eats has been in demand. However, the rides business is struggling to stay afloat after suffering 80 per cent drop in business.
Also, it is reported that the growth of opportunity in Eats will not be able to cover the expenses that Uber expects to incur in trying to restructure, doll out severance packages and other benefits and close down offices.