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Uber
is laying off another 3,000 employees, the Wall Street Journal reports
. Uber is also closing 45 offices and rethinking its approach in areas like freight and autonomous vehicle technology.
This comes just weeks after
Uber laid off 3,700 employees in order to save about $1 billion in costs.
Since the COVID-19 pandemic hit, Uber has laid off about 25% of its workforce.
Rides have been hit hard amid the coronavirus. More specifically, rides are down about 80%, according to the company.
“I knew that I had to make a hard decision, not because we are a public company, or to protect or stock price, or to please our Board or investors,” Uber CEO Dara Khosrowshahi wrote in a memo to employees today. “I had to make this decision because our very future as an essential service for the cities of the world — our being there for millions of people and businesses who rely on us — demands it. We must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing, expanding, and innovating.”
Meanwhile,
Uber is in talks to buy GrubHub to beef up its food delivery business, UberEats
, according to The WSJ and Bloomberg.
Uber first approached Grubhhub earlier this year with an offer, but the two companies are still in talks, according to the WSJ. A Bloomberg
report says the deal could be finalized
sometime this month. This comes a few months after reports emerged that Grubhub was looking to sell Uber, DoorDash and others
.
Amid the COVID-19 pandemic, food delivery has been hot. In Q1,
Uber Eats experienced major growth with gross bookings of $4.68 billion
, up 52% from that same quarter one year ago. Grubhub, meanwhile, saw gross food sales increase to $1.6 billion, up from $1.5 billion in the same period last year.
“I will caution that while Eats growth is accelerating, the business today doesn’t come close to covering our expenses,” Khosrowshahi wrote in the memo today. “I have every belief that the moves we are making will get Eats to profitability, just as we did with Rids, but ut’s not going to happen overnight.”
Developing…
