Careem, one of the world’s biggest online cab-hailing service, on Tuesday has announced to lay off hundreds of its employees.
The online taxi service announced that it has laid off 31 per cent of its employees, 536 individuals in total have been deprived of a job during the ongoing pandemic.
Chief Executive Officer (CEO) Muddasir Sheikha said that the decision was held on to for a long time before being announced and the company was forced to undertake the deed due to the prevalent situation.
In 2019, Uber Technologies, global ride-hailing firm, spent $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Uber paid $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ended more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestment.
The acquisition makes Careem a wholly owned subsidiary of Uber and will keep the Careem brand and app intact, at least initially. Careem co-founders Mudassir Sheikha, Magnus Olsson and Abdulla Elyas are staying on with Careem following the acquisition, the companies said.
