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Uber, Airbnb, Disney and GM affected by pandemic 2:50
(CNN Business) - Uber informed its staff Monday that it will lay off another 3,000 employees, while continuing to face the pressure of the global pandemic on its core business.
The news comes less than two weeks after the company announced cuts that affected 3,700 full-time jobs. Taken together, these layoffs represent a reduction of approximately 25% in company personnel since the start of the pandemic.
In an email sent to employees Monday, which was seen by CNN Business, Uber CEO Dara Khosrowshahi noted that the company is also "closing or combining" around 45 offices worldwide.
"We must take these difficult actions to stand firm on our feet, to secure our future and continue our mission," Khosrowshahi wrote, adding that the cuts are intended to help the company "focus our efforts on our core."
How does urban planning and transport affect the spread of different viruses? 2:11Uber shares rose more than 6% in mid-day trading on Monday after news of layoffs.
Lyft, Uber's main rival in the United States, also announced layoffs last month. The two companies, which lost money before the pandemic, have experienced sharp declines in their transportation businesses while more people remain home. In a earnings call earlier this month, Khosrowshahi said the Uber's Rides business had plunged about 80% in April, but added that it has been rebounding in recent weeks.
Unlike Lyft, Uber has spent several years building a business around food delivery. "If there is a silver lining to this crisis, it is that Eats has become an even more important resource for people at home and for restaurants," said Khosrowshahi. But, he warned that "while Eats' growth is accelerating, today's business is not close to being able to cover our expenses."
Even when making painful cost cuts, Uber seems ready to invest more in food deliveries. Last week, various media reported that Uber made an offer to buy food delivery company GrubHub. A Uber spokesperson previously told CNN Business that the company does not comment on rumors or speculation about mergers and acquisitions.
How it is to drive an Uber during the covid-19 crisis 3:08At the same time, Uber is also modifying how its transportation business will function during the health crisis. As parts of the US Beginning to reopen for business, Uber now requires drivers and passengers to wear masks or face shields as it anticipates an increase in ride requests.
"Having learned my own personal lesson about the unpredictability of the world, due to a hit in the gut called covid-19, I will not make any claims with absolute certainty about our future," Khosrowshahi wrote in the email about the layoffs. "However, I will tell you that we are making really very difficult decisions now, so that we can say goodbye, be as clear as we can go forward and start building again with confidence," he added.
Uberubereats
