Uber will fire 14% of its workforce for the coronavirus

Uber announced Wednesday that it will lay off 3,700 employees, about 14% of its workforce, in response to the collapse of displacement as a result of the coronavirus pandemic.

The layoffs will focus on the customer service and hiring teams, the company explained in a communication sent to the Securities Market Commission (SEC), the United States’ stock regulator.

In addition, the popular transport platform announced that its CEO, Dara Khosrowshahi, will give up his base salary for the remainder of the year in this plan to reduce the company’s operating expenses.

In the last financial year, the executive earned a million dollars in this way, but the bulk of his remuneration came through bonuses and actions.

After the information was released, Uber’s shares fell around 2% on the New York Stock Exchange.

The company plans to release its quarterly accounts on Thursday, which will shed a little more light on the impact the pandemic is having on its business.

In mid-March, Khosrowshahi said Uber rides had been cut by up to 70% in some of the US cities. most affected then by COVID-19, such as Seattle, where the first major outbreak in the country.

So far, some press reports have pointed out that trips booked through Uber have plummeted 80% globally.

Last week, rival Lyft already announced that it will lay off 1,000 employees and temporarily withdraw several hundred to deal with the current situation.

Uber, which so far had a workforce of about 27,000, and Lyft were sued Tuesday by the California state government for classifying their drivers as contractors, rather than employees, against local law.


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