Ride-hailing company Uber has decided to close its Mumbai office permanently as a part of the cost-cutting due to the lockdown. Although, its cab services will remain unaffected. Employees have been instructed by the company to work from home. App-based cab service provider company Uber had already laid off employees in the country.
According to media reports, the employees working in the Mumbai office have been asked to work from home till December. At the moment it is not clear whether the employees will be sent to another office in Mumbai next year. The company will continue its rides service in Mumbai.
Let us tell you that in the past, food delivery, hospitality sector companies and mid-stage startup companies have either closed or rented many of their offices. According to corporate executives and real estate developers, companies are trying to reduce their rent by an average of one-third.
On the other hand, Uber Chief Executive Officer Dara Khosrowshahi said in a recent conference call that the company plans to cut spending by $ 1 billion due to COVID-19 affecting business.
Uber has a total of 6,700 employees globally. Out of these, it has fired 600 employees in India, while the company has laid off 3,700 employees globally. Last month, Uber had made a video call to its employees via zoom and said that the COVID-19 epidemic has become a major challenge.
The company reported a 14 percent increase in revenue in the first quarter of the current financial year. It has been $ 3.54 billion. However, its net loss increased to $ 2.92 billion during the same period. This is 1.63 times more than a year ago deficit of $ 1.1 billion. Before that, Uber's rival Ola laid off 1,400 employees in May.
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