Uber has announced plans to further reduce its operating expenses

Wednesday, May 20, 2020

 In response to the economic challenges resulting from the Covid-19 pandemic, Uber will be further reducing its operating expenses as it has been been hard hit by the slowdown in travel caused by the outbreak.

The company expects to reduce its workforce by approximately 3,000 full-time employee roles.

Uber  estimates that it will incur approximately $175-$220 million in charges and the  latest layoffs bring the total reductions in recent weeks to a quarter of the workforce, with around 6,700 staff to go in total.

It is also closing  more than 40 offices and winding down units such as its artificial intelligence lab which might save US$1 billion by the end of the year through the changes.

Dara Khosrowshahi, Uber chief executive, said that given the dramatic impact of the pandemic, and the unpredictable nature of any eventual recovery they  are concentrating their  efforts on their core mobility and delivery platforms and resizing their company to match the realities of our business.

He said that it was a  painful decisions today and they are stopping some of our non-core investments and reducing the size of their workforce by around 3,000 people.

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