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Uber Technologies to cut off 3,700 full-time jobs after COVID-19 hit

Uber Technologies to cut off 3,700 full-time jobs after COVID-19 hit
Uber Technologies to cut off 3,700 full-time jobs after COVID-19 hit

Uber Technologies Inc., will be shedding nearly 3,700 full-time jobs while Dara Khosrowshahi , the Chief Executive Officer, will be giving up his base salary for the remaining year as the COVID-19 pandemic has decimated the ride-hailing business.

The company said that the layoffs also involved its recruiting teams and customer support and also expects to incur the cost of about $20 million for the severance and other related charges. Rival Lyft and Uber have together withdrawn their financial outlooks for a full-year as the demand for rides hailed from apps have dropped dramatically in the world after governments have implemented the stay-at-home orders to limit the coronavirus transmission.

Uber has been operating in several more markets across the world than Lyft has which will help the company recover lost revenue with the food delivery business. Uber had recently announced that it had been cutting down about 536 jobs in the coming week that was mainly representing about 31% of the workforce of the company unit headquartered in Dubai.

Uber’s company that operates the ride-hailing as well as a delivery business across the Middle East, Careem said that it wished to prioritize the security of the company while its parent had continued to trust in the business model and was also committed to the region.

The announcement of cutting down the workforce in Dubai had come after Uber had announced that it will be shutting down its Eats delivery in certain markets that especially involve the Middle East. The affected employees would, however, receive a minimum of three months of severance pay, certain cases will get an extended visa as well as medical insurance and a month of equity vesting.

Lyft will be reporting the quarterly results in the near future, right after the market hours and Uber was expected to report its earnings soon too.

 

Source Credit- https://business.financialpost.com/pmn/business-pmn/uber-to-cut-3700-jobs-ceo-khosrowshahi-to-waive-base-salary

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.