Ride hailing firm Uber has announced it was cutting 3,700 jobs amid a huge slump in its ride-hailing operations during the pandemic, AFP reported.
The cuts amount to around 14 per cent of Uber’s global workforce, which does not include its contract drivers.
The company made the announcement in a regulatory filing, which also said chief executive Dara Khosrowshahi would waive his base salary for the remainder of the year.
The company said the layoffs included its customer support and recruiting teams, and expects to incur about $20 million in costs for severance and related charges.
Uber and rival Lyft have already withdrawn their full-year financial outlooks as demand for app-based rides dropped sharply across the world after governments imposed stay-at-home orders to curb the transmission of the coronavirus.
But Uber, which operates in more markets around the world than Lyft, could recover some lost revenue with its food delivery business.
Uber Riders and Drivers Will Be Required to Wear Masks
Until now, the company has been suggesting that masks be used to combat COVID-19.
On Monday, Uber’s Middle East business Careem said it was cutting 536 jobs this week, representing 31 per cent of the Dubai-headquartered company’s workforce.
Lyft will report its quarterly results on Wednesday after market hours and Uber is expected to report earnings on Thursday.
Uber shares opened 3 per cent lower on Wednesday.
