Uber Technologies, Inc. is laying off some 3,700 full-time employees amid COVID-19, the US ride-hailing company said.
The company plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the company’s business, according to Uber’s regulatory filing to the US Securities and Exchange Commission (SEC) on Wednesday, Xinhua news agency reported.
Due to lower trip volumes in its rides segment and the company’s current hiring freeze, Uber is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles, the filing said.
“With the reality of our rides trips volumes being down significantly, our need for communication operations as well as in-person support is down substantially. And with our hiring freeze, there simply isn’t enough work for recruiters,” the company’s CEO Dara Khosrowshahi said in a letter to staff.
Khosrowshahi also reached an agreement with Uber’s Board of Directors, effective May 2, to waive his base salary for the remainder of the year ending December 31, 2020.
In connection with these actions, the company estimates that it will incur approximately US $20 million related to severance and other termination benefits. The company is evaluating other cost and will provide an update in subsequent SEC disclosures regarding such amounts if material, said Uber’s filing.-IANS News
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