Uber reduced workforce by 14% due to massive drop in trips, lay off about 3700 full time staff | Uber reduced workforce by 14 per cent due to heavy fall in riders, retrenchment of about 3700 full time staff

  • The company said that this retrenchment has been done in the customer support and recruitment team.
    In March itself, the company reported that demand for taxis at Corona hotspots decreased by 60%.

Dainik Bhaskar

May 07, 2020, 12:11 PM IST

New York. The impact of the Corona epidemic is being seen in the e-commerce, tourism and aviation sectors as well as taxi service companies. Recently, American Ride Sharing Uber announced a layoff of about 14% of the staff, or about 3700 full-time employees. The company attributed the decrease in trips to lockdowns caused by the epidemic. The announcement was made after the company released its quarterly results.

The company lost $ 8.5 billion last year.
Dara Khosroshahi, the company's chief executive, also cut his base salary for the year, which was earlier fixed at one million dollars. Even before the epidemic, Uber was struggling with economic crisis. The company incurred a loss of $ 8.5 billion in 2019. The company said the retrenchment was done in the customer support and recruiting team, who in turn had to pay $ 20 million and other expenses.

The company gave a warning in March

  • In March itself, executives warned the company that demand for taxi service at Corona hotspots had dropped by 60 percent. However, Uber Eats food delivery service has seen an increase.
  • The company said on Wednesday that at the moment we do not know how long it may take to recover, so we had to take this step to cut down on spending. Most of the company's business is spread in big cities, including those which are most affected by Corona. Last year, the company spent 23 per cent on the platform in London, including four metro cities in the US, including New York and San Francisco.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *