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Uber struggles with the crisis by firing employees

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Uber struggles with the crisis by firing employees
May 19
09:00 2020

Uber Technologies Inc., a well-known American taxi and food delivery company, is experiencing extremely hard times. The letter to employees, sent out by the Uber CEO Dara Khosrowshahi, has fallen into journalists’ hands.

Less than two weeks have passed since the moment when the company announced the staff reduction by almost 4 thousand positions. This is about a quarter of the administrative apparatus of the corporation. This measure has proved inadequate, so Mr. Khosrowshahi has decided to reduce about another 3 thousand additional jobs.

Drivers will not suffer, as they are not considered full-time employees of the company. Uber will take another step to survive: the management has planned to close 45 offices. Moreover, Uber has decided to sell off non-core assets.

In the first quarter, Uber increased its net loss due to large write-offs related to Asian investments.

Uber CEO Dara Khosrovshahi has explained to investors that all these tough measures will help the company reduce its annual expenditure by one billion US dollars.

Uber shares began to grow due to the news. During yesterday’s trading session, the shares rose 6.5%; since the beginning of the year, the increase has totaled 16.3%.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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