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Uber announces more layoffs dragged by the red numbers

2019-10-14T21:46:16.549Z

Things do not roll as well as they should in Uber. On Monday, the San Francisco-based transport company announced the cutting of 350 jobs in different divi



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Things do not roll as well as they should in Uber. On Monday, the San Francisco-based transportation company announced the cut-off of 350 jobs in different divisions, including Uber Eats , its food delivery branch, and the autonomous vehicle unit.

The company's titles with a presence in 63 countries reacted with a 3% rise to the news, partially correcting the poor performance of its values ​​since its IPO in May this year. Even so, they are still more than 30% below their original price: $ 45 .

"Days like today are hard for everyone, and both the executive leadership team and I will do everything we can to make sure there is another day like this in the future," company CEO Dara Khosrowshahi said in a statement. .

The Iranian-born executive argued the need to eliminate duplication of functions in the company, in addition to eradicating "the bureaucracy that tends to accumulate in companies that are in the growth phase." In the background, there is a profit and loss account that has not lived up to what was expected of a revolution like yours. In the second quarter of the year alone, Uber presented losses of more than 5,000 million dollars , its worst performance to date.

The situation could get worse if you are forced by law to change the employment relationship with the hundreds of thousands of drivers who operate your service in the United States. In California, Governor Gavin Newsom signed the AB5 law in September that aims to convert millions of independent workers into employees of the corporations they serve. If these go from being autonomous to staff members, it is estimated that the operating cost for Uber could be increased by 30% .

It is not necessary to discard, therefore, new rounds of dismissals. With this there are already three in recent months for the arch-enemy of the taxi sector. In August, he got rid of 400 employees of his marketing team and in September he was forced to cut another 435 jobs . The adjustment announced on Monday represents 1.5% of its workforce worldwide, with a total of 22,263 employees, according to FactSet data.

According to the criteria of The Trust Project

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