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Wish there was a different answer, says Uber CEO as company cuts 3000 more jobs

With the latest development, Uber has trimmed off 25 per cent of its total employees.

twitter-logoYasmin Ahmed New Delhi Last Updated: May 19, 2020 | 13:15 IST
(Source: Reuters)

Highlights

  • Uber has laid off 3000 more employees as it continues to take the hit because of coronavirus.
  • This development comes just days after Uber laid off over 3500 employees over a 3-minute Zoom call.
  • Uber CEO has said that the profits by Uber Eats do not cover losses faced by the riding app.

Uber said it is laying off 3000 more employees the world over and shutting over 40 offices with a large office getting absorbed in San Francisco.

The development comes just days after Uber laid off 3700 employees. With the current layoffs Uber has trimmed its workforce by 25 per cent, Washington post reported.

Uber said their rides have been down by 80 per cent.

Uber CEO, Dara Khosrowshahi, in an email addressed to his employees said, "I wanted there to be a different answer Ultimately, I realized that hoping the world would return to normal within any predictable time frame, so we could pick up where we left off on our path to profitability, was not a viable option."

Even though Uber rides are facing the brunt of the pandemic, the company is seeing profits where Uber Eats is concerned, but it does not make up for the losses.

"I will caution that while Eats growth is accelerating, the business today doesn't come close to covering our expenses," Khosrowshahi said. "I have every belief that the moves we are making will get Eats to profitability, just as we did with Rides, but it's not going to happen overnight."

The company saw major layoffs as a result of no demand in rides in the backdrop of the coronavirus pandemic.

Earlier this week, the ride-hailing company laid off 3,700 employees over a single 3-minute zoom call. Ruffin Chaveleau, head of Uber's customer service. "We are eliminating 3,500 frontline customer support roles. Your role is impacted and today will be your last working day with Uber."

Chaveleau reportedly broke down during the call and how the elimination was done was criticised.

Uber has cut down on its experimental projects too in areas such as micro-mobility and self-driving, the report stated.

Meanwhile, Uber India has issued a set of guidelines as cab services have slowly started to resume in the country.

As of now, the option of 'Uber Pool' is banned until further notice and a maximum of two passengers can ride at a time. No passengers are allowed to sit on the front seat.

Wearing masks is mandatory in the absence of which passengers can cancel their ride for no fees. Drivers are also required to sanitize their cars. The ride will not start until the driver sends a photo wearing a mask.

These guidelines are similar to global coronavirus precautionary measures announced by Uber.

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