Uber is to sack another 3,000 workers on top of the 3,700 it fired earlier this month and close 40 offices which will mean it has reduced its workforce by a quarter in the last few weeks and made savings of $1 billion.

The sackings are of office staff and do not include drivers. 

“We must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing, expanding and innovating,”  CEO  chief executive Dara Khosrowshahi told staff, “we have to take these hard actions to stand strong on our own two feet, to secure our future and to continue on our mission.”

Uber is to close down its AI unit and product incubator.

“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,” said Khosrowshahi.

Uber Eats, has done well in the lockdown “but doesn’t come close to covering our expenses,” he said.

 Uber rides dropped 80% in April as a result of lockdowns.

“Given the dramatic impact of the pandemic, and the unpredictable nature of any eventual recovery, we are concentrating our efforts on our core mobility and delivery platforms and resizing our company to match the realities of our business,” said Khosrowshahi in the letter to staff.

For several years, Uber has been existing by running down capital at the rate of around €1 billion a quarter.