The transport and mobility company Uber has announced that it will lay off 3,000 workers in order to cut costs to minimize the financial impact of the crisis caused by the Covid-19 pandemic, as reported in a statement.
These 3,000 layoffs are in addition to the 3,700 that were announced less than two weeks ago. In total, the company estimates that laying off these 6,700 people will save around $ 1 billion compared to the cost structure planned for the whole of 2020.
“Given the dramatic impact of the pandemic and the unpredictable nature of the possible recovery, we will focus our efforts on our key mobility and home delivery platforms, as well as resizing the company to adjust to the realities of our business,” stated the CEO of Uber, Dara Khosrowshahi.
“This leads us to make painful decisions today: We are going to curb some non-key investments and reduce the size of our workforce by 3,000 people, each of whom I want to personally thank for their contributions to Uber. As I have told our teams today, we are making these tough decisions so we can go ahead and start building again with confidence,” added the company’s chief executive.
Uber has also announced that it plans to close offices as part of the layoffs and adjustment effort. In his statement he does not mention the number, although the newspaper ‘The Wall Street Journal’ assures, citing sources close to the company, that 45 offices will be closed.
The firm has calculated that the dismissal of the 3,700 people announced on May 6 will cost between 35 and 40 million dollars for severance and other additional charges.
On his side, the firing cost of the 3,000 people announced this Monday will reach a figure of between 175 and 220 million dollars. Between 110 and 140 million would correspond to compensation, while between 65 and 80 million dollars would derive from the closure of offices.
Due to these measures, all Uber board members have decided to forgo their cash remuneration for the remainder of 2020.