Uber will lay off 3,700 employees or about 14 per cent of its workforce amid coronavirus pandemic.
According to filings with the US Securities and Exchange Commission, Uber, the technology company behind the world’s largest ride-hailing app, will lay off 3,700 employees or about 14 per cent of its workforce.
Symbolically, the company’s CEO, Tara Kosrowshahi, will drop his salary this year as Uber struggles to cut costs amid the current financial crisis.
Global shutdowns and travel restrictions caused by the COVID-19 pandemic have devastated Uber, which informed investors in March that total bookings in major cities were down 70 per cent.
Despite the recent gains from Uber Eats, the company’s food delivery app, they are not doing enough to offset the severe losses in its flagship ride-hailing service.
The layoffs are expected to affect the company’s recruitment and customer support units. According to Uber, it will cut about $ 20 million in costs and other costs related to layoffs.
“Much of our leading customer support staff are unfortunate because people travel less, not enough work,” said Uber.
Hed added; “Since we do not know how long the recovery will take, we are taking steps to bring our costs according to the size of our business. It is a difficult decision, but it is the right thing to do to help protect the long-term health of the company and ensure that we come out strong from this crisis. “
Of course, the key feature of Uber’s employees is that the drivers of the freeway that take passengers through the Uber app are the company’s primary victims, as the demand between international locksmiths and socio-distance regulations has almost dried up.
Meanwhile, Karim, a subsidiary of Uber in the Middle East, has fired about 30 per cent of its employees, shutting down its bus transport use.
At the same time, Lyft , Uber’s main competitor in the ride-hailing industry, announced the layoff of 1,000 employees, 17 per cent of its workforce.