Not so long ago, in the past period, UBER was more ambitious and clear about what they want to achieve in the industry. At Uber, the main goal was to introduce the self-driving revolution in the world. The situation has turned quite opposite since the spread of Coronavirus. In order to survive this situation, the company has to cut 3000 more jobs, which increases the total layoffs tally to 6700. Also, the company has announced that it is sidelining the projects which were not mainstream.
Most of the employees who were laid off belong to HR, Customer Support. In a recent email to the employees, the CEO has said that jobs will be the last casualties in this crisis. He also said that the company would stick to the two core agendas, which are rides and food-delivery. He further added that several out of the box units like Uber incubator, AI labs, Uber works, etc. will be shut down. 45 offices globally are being closed in order to survive in this crisis situation.
He also clarified that these decisions were taken not to impress the investors and also he urges that the company should be self-reliant, should not depend on the new investors for capital. On Monday, initially, Uber shares have risen about 9% before falling off to less than 4% by the end of the day. The planned cuts and other decisions taken by the company will cost them around $175 to $220 million.
Several experts predict that Uber has transformed itself into a cost focus company and in order for it to survive, the measures which are already taken might not be enough.
Earlier this month, Uber has announced a gradual decline in the gross bookings for the first time. Hence they had to push back the goal of being profitable to next year, instead of by the end of this year. Right now, Uber is in discussions with Grubhub, which could potentially make Uber a dominant player in the food market. This deal could also make enough savings for the company. Recently, Uber borrowed $100 million which adds to the $900 million bond sale priced last week,