Uber's May layoffs amount to a 25% reduction of its global workforce. Its Uber Eats business has grown during the COVID-19 crisis, but rides fell 80%.
Uber is cutting over 3,000 jobs due to the impact of the coronavirus pandemic two weeks after the company announced a previous round of layoffs earlier this month.
The ride-hailing company is also closing 45 offices around the world, according to an email to employees from Uber CEO Dara Khosrowshahi.
The combined layoffs represent a 25% reduction of the ride sharing company’s global workforce, according to a statement by Uber. Some of the offices closing its doors include the Pier 70 office in San Francisco. The layoffs were first reported by The Wall Street Journal.
Uber has seen its main profit generator, booked rides, decline by 80%, Khosrowshahi said in the email.
“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,” he said.
Affected employees will receive a severance package, which includes a minimum of 10 weeks pay and health benefits through the end of the year. According to the company, the layoffs will be made in most departments and regions around the world.
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Uber’s first round of layoffs on May 6 impacted over 3,700 full-time workers, who were notified of their termination via Zoom.
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