Uber has announced to lay off 3,700 employees, which makes up about 14% of its workforce, as the company faces an uncertain future in the face of the novel COVID-19 pandemic.
The San Francisco-based company confirmed in a Securities and Exchange Commission filing that fewer people are taking rides due to novel coronavirus. The company has implemented a hiring freeze in addition to cutting thousands of jobs from its customer service and recruiting teams, it said in the filing.
Uber said it expects to spend about $20 million on severance and other benefits for the laid-off employees. Furthermore, the company CEO Dara Khosrowshahi will not be paid for the rest of the year. His salary was set for $1 million in 2019, with a possible $2 million bonus. In an email sent to all employees on Wednesday, Khosrowshahi wrote:
“Days like this are brutal, I am truly sorry that we are doing this, just as I know that we have to do this.”
Uber’s announcement follows similar cuts by tech companies including Lyft and Airbnb, fellows in the on-demand economy that has taken a plunge as people stay at home and try to avoid contact with others.
Related: Careem Lays Off 31% of its Workforce
Lyft said last week it would lay off nearly 1,000 people, or 17% of its staff, as the pandemic cuts into its revenue whereas Airbnb has started cutting 25% of its workforce which makes up around 1,900 people.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com