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Uber securing itself by insecuring ‘3,700’ staff members – downsizing announced!!!

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Uber has announced a tough action plan to hold back its business during the epidemic.

The firm says it will cut 3,000 more jobs and reduce the overall reduction to a quarter of the workforce in recent weeks.

It is closing more than 40 offices, consolidating and approving units such as its artificial intelligence lab.

The Chief executive of the firm said that we have to take the moves which were necessary “to secure our future”.

Dara Khosrowshahi, Chief executive wrote in a letter to staff, “We must establish ourselves as a self-sustaining enterprise and also we don’t rely on new capital or investors to keep growing, expanding and innovating.”

In addition to his statements, he said, “We have to take these hard actions to stand strong on our feet. We can secure our future to continue work on our mission..”

Uber Rides Dropped 80% last month

Before this pandemic situation, Uber was badly damaged and was facing huge losses. But its challenges to epidemics have become increasingly active.

During this pandemic situation, the uber rides dropped 80% last month in the US and Canada. Meanwhile, although its Uber Eats food delivery business has picked up, it is running at a loss.

Initial of this month, Uber announced that it would deduct the 3,700 staff members and warned of possible additional reductions. Manpower cuts don’t include drivers who are considered above by an independent contractor.

From the next year, we will start closing the effected offices that may include San Francisco office and hub in Singapore. The new regional headquarters will also be selected by the company.

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Uber said it would reorganize its remaining staff and cut back spending in areas that are not part of its core personal transport or food delivery businesses, including its Al Labs.

As the company said, The cost of joint operations must be reduced by $1bn.

Wider Impact

The ongoing economic impact of the virus on the world also results in Uber’s actions for their recent decisions to control the outcome.

As some places have started to ease restrictions, most of the companies in which including the travel industry have warned that it will take time for public confidence in the safety of many everyday activities to be restored.

Lyft, who is Uber’s smaller rival, has also announced significant job cuts like other major businesses including airlines, hoteliers, and booking platforms.

According to Mr. Khosrowshahi said, “The pandemic has caused a huge impact, and recovery from this situation is unpredictable. Our prime efforts are mobility to provide a platform where we can continue our services even if we have to resize our company to meet the business realities.”

 

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