Uber announces that it will dismiss an additional 3000 employees just two weeks after the last mass dismissal associated with the new coronavirus epidemic
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Uber, a major vehicle dispatch service company, sacked about 3,700 full-time employees on May 6, 2020, due to the impact of the new coronavirus infectious disease (COVID-19) that is rampaging all over the world in 2020 I made it clear . Only two weeks later, on May 18, Uber announced that it would fire another 3,000 employees.
Uber reportedly to cut 3,000 more jobs
https://www.cnbc.com/2020/05/18/uber-reportedly-to-cut-3000-more-jobs.html
Uber lays off 3,000 people in second big round of cuts | Ars Technica
https://arstechnica.com/cars/2020/05/uber-lays-off-3000-people-in-second-big-round-of-cuts/
Uber lays off 3,000 more employees in latest round of COVID-19-inspired cuts-The Verge
https://www.theverge.com/2020/5/18/21262337/uber-layoff-3000-employees-covid-19-coronavirus
In the first layoff round following the COVID-19 pandemic in early May, Uber laid off about 3,700 full-time workers. As of the end of 2019, Uber had approximately 26,900 employees, meaning almost 14% of all employees were dismissed at once. Job cuts are said to be in response to 'economic challenges and uncertainties associated with the COVID-19 pandemic,' and Uber CEO
In less than two weeks, Uber announced that it would lay off 3,000 new employees. This will reduce the number of Uber employees from about 26,900 at the end of 2019 to about 20,000, which is a reduction of nearly a quarter of the staff. In addition to dismissing thousands of employees, Uber is closing its 45 offices around the world and is consolidating its operations by discontinuing the Uber Incubator launched in September 2019.
On the other hand, Uber has not abandoned all of its costly side business, and the Advanced Technologies Group, which is developing the autonomous driving program, will continue to exist despite the dismissal of some employees. Kosloshahi said, 'It's always been a long-term investment' for Uber's development of self-driving cars.
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According to a report from the Wall Street Journal, Uber's core vehicle dispatch service business saw sales fall by 80% in April 2020 compared to the previous year. 'In light of the dramatic impact of the pandemic and the unpredictability of the eventual recovery, Kosloshahi is focusing on Uber's mobility and delivery platform and resizing the company to match the reality of the business. That has made us some hard choices today. '
Uber Eats, Uber's food delivery service, is booming as the COVID-19 pandemic threatens the world, while the vehicle dispatch service has been severely damaged. Bookings in the Uber Eats division have increased by 54% year-on-year, but it's not enough to make up for a serious loss of dispatch services. 'Uber Eats is accelerating its growth, but we can't cover our costs at this time,' Kosloshahi said in an email to employees.
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`` We worked to provide generous support to people away from Uber, including strong retirement benefits, medical insurance, and retiree development, '' Kosloshahi said in an email to employees. It claims to give special consideration to those who stay or who are on childcare leave. Uber will spend $ 110 million to about $ 140 million (about $ 15 billion) in a series of dismissal packages to be implemented in the second quarter, and $ 65 million (about 70 million) with the closure of offices. It plans to spend between $ 80 million and $ 80 million (about 8.6 billion yen). To maintain its core business functions even under difficult conditions, Uber's board has also decided not to receive all cash salaries during 2020.
The negative impact of the COVID-19 pandemic is the same with Lyber, a rival competing with Uber. On April 29, it was revealed that Lyft would lay off 982 people , or 17% of all employees, suggesting that the dispatch service was severely damaged by people not going out.
The impact of COVID-19's pandemics is constantly changing, and CEO Kosuloshahi avoids making future promises in emails to employees. 'I've learned an important lesson about the unpredictability of the world from the COVID-19 attack, so I'm not going to argue with absolute confidence about Uber's future. But now we are Let me tell you that we are making a really difficult decision so we can say goodbye, clarify what we can do and move forward and confidently start rebuilding 'Said Kosroshahi, CEO.
by Tati Tata
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