Economy and Business
Luis Miranda – May 18, 2020 – 19: 30 (CET)
Uber confirmed that it will fire 3. 000 employees and will close dozens of offices around the world in order to stay profitable in the COVID crisis – 19
The pandemic of the coronavirus continues to wreak havoc on Uber and other technology. After announcing a cut of the 14% on its staff two weeks ago, the company will fire 3 others. 000 workers . According to The Wall Street Journal , Uber He sent an email to his employees advising them of the decision.
The president of the company, Dara Khosrowshahi, also confirmed that it will close 30 Offices and plans to move its Asia headquarters out of Singapore. The decision comes after a confinement that has taken its toll on Uber, Airbnb and other companies.
“I knew I had a tough decision to make, not because we were a public company or to protect the stock price,” Khosrowshahi said in the email sent to his employees. “I had to make this decision because our future as an essential service for the cities of the world, our being there for millions of people and companies that trust us, demands it.”
The firing and closing of offices will cost Uber a little more than 225 millions of dollars. The company said it will reduce the size of its non-core businesses. The product incubator and its artificial intelligence laboratory will be closed , to while looking for alternatives to UberWorks, a platform that connects temporary workers with employers.
Uber readjusts the strategy to focus on delivery
With all this, Uber is on the eve of acquiring GrubHub , a direct competitor of UberEats in the United States. With the fall of 80% in transportation activities due to confinement, the focus is on the service of delivery .
The future is uncertain and Uber does not want to make predictions. Khosrowshahi said that will seek to focus on core businesses – mobilize people and goods – and that will be reevaluated by others such as autonomous driving . The company invested hundreds of millions of dollars in this division, which in recent months resumed testing its cars after a regrettable accident.
On the other hand, UberEats is in full growth . The division increased its distributions by 54% due to quarantine, although it is not enough to cover Uber costs. Some analysts estimate that buying GrubHub will give you a break to the technological one, who will not have to invest money in strengthening the structure of the delivery service .
The dismissal of 3. 000 employees and closure of 45 offices mainly affects the United States . This adjustment does not consider drivers, since they are not registered as workers.
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