News: Uber to cut 3,700 jobs

C-Suite

Uber to cut 3,700 jobs

The company said the layoffs included its customer support and recruiting teams and expect to incur about $20 MN in costs for severance and related charges.
Uber to cut 3,700 jobs

Uber Technologies Inc will cut about 3,700 full-time jobs and Chief Executive Officer Dara Khosrowshahi will forgo his base salary for the remainder of the year, the company said on Wednesday, as the COVID-19 pandemic decimates its ride-hailing business.

The company said the layoffs included its customer support and recruiting teams and expect to incur about $20 MN in costs for severance and related charges.

Earlier this week, Uber's Middle East business Careem said it was cutting 536 jobs this week, representing 31% of the Dubai-headquartered company's workforce.

In a letter to staff, CEO Dara Khosrowshahi noted that the cuts will come from community operations and recruiting. Uber will also be closing around 40 percent of its Greenlight locations — used for in-person driver assistance.

“With the reality of our rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially,” he writes. “And with our hiring freeze, there simply isn’t enough work for recruiters.”

Khosrowshahi has also agreed to waive his own base salary for the rest of 2020. 

“In connection with the foregoing, Dara Khosrowshahi, the Company’s Chief Executive Officer, after consultation with the Board of Directors, agreed to waive his base salary for the remainder of the year ending December 31, 2020,” the company writes in the filing. “In connection with this decision, Mr. Khosrowshahi and the Company entered into a letter agreement, effective as of May 2, 2020.”

Uber and rival Lyft have already withdrawn their full-year financial outlooks as demand for app-based rides dropped sharply across the world after governments imposed stay-at-home orders to curb the transmission of the coronavirus.

But Uber, which operates in more markets around the world than Lyft, could recover some lost revenue with its food delivery business.

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Topics: C-Suite, Compensation & Benefits, #COVID-19

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