Uber is laying off 25% of its workforce

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Just its largest investor reported an $18 billion full year loss, Uber Technologies said it is laying off over 25% of its total headcount.

Earlier today, SoftBank Group, said it booked about $10 billion in losses from its investment in Uber and WeWork and another $8 billion losses in other investments.

Shares of Uber spiked as much as 8 percent Monday on reports that the ride-hail giant is axing an additional 3,000 employees and closing 45 offices as the coronavirus slams the brakes on its business.

Combined with 3,700 pink slips the company handed out earlier this month, the latest cuts — which CEO Dara Khosrowshahi announced in a company-wide email — bring Uber’s coronavirus-fueled layoffs to about 25 percent of the company’s workforce.

“We’re seeing some signs of a recovery, but it comes off of a deep hole, with limited visibility as to its speed and shape,” Khosrowshahi said in his email, according to the Wall Street Journal. He added that the Uber Eats food delivery arm has been a bright spot during the pandemic, but “the business today doesn’t come close to covering our expenses.”

Khosrowshahi didn’t rule out more cuts for Uber, saying that it was impossible to make such a claim about Uber’s future with “absolute certainty.”

“I will tell you, however, that we are making really, really hard choices now, so that we can say our goodbyes, have as much clarity as we can, move forward, and start to build again with confidence.”

Shares of Uber were trading up 7.7 percent early Monday afternoon, at $34.96.

The offices being shuttered include one of Uber’s downtown San Francisco hubs, which was home to more than 500 employees.

Khosrowshahi also said that Uber, which has been struggling to turn a profit since going public last year, would be scaling back its artificial intelligence lab and product incubator, and would be re-evaluating costly endeavors like freight and self-driving vehicles, according to the report.

Khosrowshahi also reportedly vetoed a request from a number of Uber’s top engineers to cut their own salaries in order to avoid laying off members of their staffs.