Uber hit hard as ride demand drops amid virus

Uber has cut 3,000 jobs from its workforce, its second major wave of layoffs in two weeks as the coronavirus slashed demand for rides.

The San Francisco company has cut a quarter of its workforce since the year began, eliminating 3,700 people from the payroll earlier this month.

Uber will be re-focusing on its core business, moving people and delivering food and groceries, said CEO Dara Khosrowshahi, in a note sent to employees.

The ride-hailing giant will be closing or consolidating 45 offices globally, and almost all departments will be affected by layoffs.

The company is closing its business for developing products and services for its platform and a unit working on artificial intelligence.

Uber's rides business, the company's main profit generator, fell 80 percent in April compared to the same month last year.

Uber lost 2.9 billion dollars in the first quarter as the coronavirus pandemic decimated its overseas investments.

Companies that rely on the sharing economy have been hit hard by the coronavirus pandemic, as people stay indoors and shy away from shared services to reduce the virus' spread.

One silver lining to the pandemic is that Uber's Eats business has become more important to people staying home and restaurants, and delivery is here to stay, Khosrowshahi said.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.

(Representative Image)