Uber Announces it will be Further Reducing its Workforce by 3,000 Employees

It appears that the coronavirus pandemic has been hitting the travel industry exceptionally hard. Earlier in May, Uber (NYSE: UBER) laid off a total of 3,700 employees, which accounted for approximately 14% of the company’s workforce. But Uber continues to struggle with lack of demand for ride-hailing services, and as a result is issuing further company layoffs.

Now, Uber is reducing its workforce by an additional 3,000 employees, as well as consolidating or shutting down 45 of its offices across various parts of the world. Uber’s CEO, Dara Khosrowshahi, issued the statement via email to all existing employees, and mentioned that the company will be providing those who’s positions have been terminated with severance pay, medical coverage, as well as future job referrals.

Not only are Uber’s employees on the receiving end of bad news, but so are the company’s board of directors. As a further cost-saving measure, the company has decided to not issue the board of directors their cash retainers for the remainder of the year – a move which will save Uber approximately $1 billion.

It is expected to cost Uber anywhere between $110 million to $140 million in employee severance benefits, as well as a further $65 million to $80 million for the worldwide office closures. Despite Uber’s latest negative news, the company’s stock seems to be faring quite well. After Uber delivered the news on Monday, its stock was up by $2.68 since Friday’s close, and has only decreased by 4.9% since then.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Uber Is Allegedly Charging Users Based On … Battery Level

The ride-sharing giant was accused anew by some users of adjusting rates depending on the...

Friday, April 14, 2023, 12:18:00 PM

Uber and Lyft Face Mounting Driver Shortages as Demand for Travel Picks Up

With the US economy roaring back to life, a number of industries are getting prepared...

Tuesday, July 6, 2021, 02:36:00 PM

Route Share: Uber’s Latest Innovation Is A Bus-Like Service

Uber (NYSE: UBER) launched Route Share on Wednesday, a fixed-route shuttle service that critics say...

Friday, May 16, 2025, 12:15:00 PM

Uber’s Revenue Soars 20% in Q3, Yet Shares Drop on Missed Growth Expectations

Uber Technologies Inc. (NYSE: UBER) released its third-quarter 2024 earnings report on Thursday, presenting a...

Thursday, October 31, 2024, 09:46:17 AM

Uber Adjusts (For Investors)

Last week, this space covered a first quarter earnings report from Uber Inc. (NYSE: UBER)...

Wednesday, May 18, 2022, 01:30:00 PM