Even under normal economic conditions, labour arbitrage racket and venture capitalist money pit Uber barely made sense; during an economically devastating global pandemic, the company looks to be flailing.
In an e-mail to staff on Monday, CEO Dara Khosrowshahi stopped short of saying that the jobs would be the last of the Covid-19 casualties.
The ride hailing firm has been hard hit by the slowdown in travel caused by the outbreak. Of those two aspects Uber seems keen to rally around - rides and delivery - the former is down 80 per cent year-over-year, according to a company spokesperson.
While Uber Eats saw bookings increase by 54pc year over year, as consumers turned to takeaways during the crisis, Khosrowshahi said that this strand of the business "doesn't come close" to covering Uber's expenses.
Khosrowshahi added that Uber is also shutting down an office in San Francisco, moving some of the employees to a new headquarter in the city.
Gov't streams £84m into UK COVID-19 vaccines research
The favorable results do not prove the vaccine works but suggest that it would give patients a degree of immunity. He told the Mirror: 'Everybody is moving ahead with the belief we'll have a vaccine by the end of the year.
"We must establish ourselves as a self-sustaining enterprise that no longer relies on new capital or investors to keep growing", he wrote. Shares rose by as much as 9pc on the news. According to a securities filing, a year ago he was eligible for a salary of $1 million and a bonus of $2 million. Overall, the measures are expected to generate $1 billion in annual cost savings compared with pre-pandemic budget plans. As a result, he said, even this week's firings may not be enough.
"Let me talk to a few more CEOs.maybe one of them will tell me some good news, but there simply was no good news to hear", he said. "They have a pretty bloated cost structure".
The company shuttered seven food delivery operations, offloaded its cash-burning electric bike group to scooter startup Lime and permanently closed 40 percent of its driver stations.
The company's finances have fallen significantly due to stay-at-home orders amid the coronavirus pandemic. Rival Lyft has also laid off staff because of plummeting demand. Airbnb Inc.is cutting a quarter of its workforce.
Auto trips with Uber drivers fell, but the food delivery sector is growing.
A bright spot was Uber Eats.