US e-hailing platform Uber has announced a reorganisation to cope with the COVID-19 crisis that will lead to cut 3,700 positions worldwide, representing about 14% of its global workforce. On 5 May, the CEO told employees that plans for dismissals would be finalised within two weeks. The company highlighted the restructuring would cost it about $20 million in severance and other benefits payouts. In a statement, Uber explained job cuts are the consequence of 'lower trip volumes in its Rides segment and the Company’s current hiring freeze' that led the Company to reduce its 'customer support and recruiting teams'. Uber had 26,900 global employees as of 31 December 2019, with 10,700 in the USA and 16,200 in other countries.
Update 18/05/2020: Uber has announced to cut 3,000 jobs in addition to the 3,700 job losses announced on 6 May 2020. Uber will reduce its investments in several 'non-core' projects as the company reorients itself around its two core businesses: ride hailing and food delivery. The ideas generator Uber Incubator, the artificial intelligence division AI Labs and a job-matching service Uber Works will be closed. Since the COVID-19 crisis started, Uber has announced to cut more than a quarter of its global workforce. The office closures include one of its locations in San Francisco (USA), and its Singapore office. In total, Uber will close or consolidate 45 of the several hundred offices it operates globally. Uber announced it would create a talent directory for employees leaving the company and that the company will offer severance packages. In the EU, Uber main offices are located in Ireland, France, UK, Spain and Netherlands.