Business

Uber closes its Los Angeles office and reportedly dismisses 80 people

According to reports, the transportation giant has cut more than 1,000 workers since it went public last May.

2 min read

This story originally appeared on Business Insider

Uber closes its Los Angeles office and reportedly dismisses 80 people
Uber closes its Los Angeles office and reportedly dismisses 80 people

Uber is closing its Los Angeles office and reportedly laying off about 80 employees.

According to the office staff was informed, without prior notice, that their work would be transferred to Manila in the Philippines.

The newspaper obtained a recording of the meeting in which the bad news was given. Ruffin Chevaleau, head of the Uber Center of Excellence in Phoenix (Uber term for a customer service office), was the person in charge of making the announcement.

“We have decided to close the Los Angeles downtown office and we will transfer the dissemination and innovation work to our center in Manila where we can continue to support the business as it grows,” he said.

“I know this is a shock. This meeting is to inform everyone that today is the last day in this office.”

Chevaleau also reportedly told staff that they would receive severance pay packages, that they could apply for other Uber positions and that they would cover their transfer if they found work at other Uber offices.

Various reports indicate that Uber has cut more than 1,000 workers since it went public last May because CEO Dara Khosrowshahi seeks to avoid what he calls “duplicate work.”

Khosrowshahi also reviewed Uber's earnings forecast earlier this month, saying the company expected to be profitable in the fourth quarter of 2020 rather than in 2021.

Although Uber earned $ 997 million in 2018 thanks to the one-time impact of selling its international businesses, the company has not been profitable despite being the world's largest transportation application.

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