With the extension of the nationwide lockdown to May 17, 2020, Uber, the ride-hailing giant plan to lay off 500 to 700 of its employee in the country. Indian Uber is also planning to go through with the layoffs within the next two weeks
Uber’s decision is almost final and the company is probably announcing the layoffs once the = lockdown is lifted.
“With this, Uber would be laying off about 25% to 30% of its workers in India.”
According to the sources, Uber in the US currently employs over 2,000 people in the country. The top executive at the company confirmed that Uber will be laying off 20% of its workers, counting roughly 500 members in India.
On May 02, 2020, in a US Securities and Exchange Commission, Uber discussed the plans to reduce the recruiting teams and customer support and by about 3,700, which means 14% of the total workforce.
Additionally, the Uber CEO, Dara Khosrowshahi agreed to give up his base salary for the rest of the year.
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Uber’s Middle East subsidiary, Careem said it would be slitting its workforce by about 31%, which means affecting 536 employees. However, the company has also assured those who are departing the company will receive severance pay, extended visas, equity vesting, and medical insurance.
The CEO Mudassir Sheikha has stated on the company’s website:
“Our business is down by more than 80%, and the recovery timeline is alarmingly unknown,”
“Our parent company, Uber, believes in our super-app vision and is committed to the region but, like others in the industry, is also impacted by the crisis.”
The Uber layoffs come just days after when Uber Eats exit eight markets: Honduras, Czech Republic, Egypt, Ukraine, Romania, Uruguay, and Saudi Arabia. Also, Uber Eats’ operations in the UAE are transferred to Careem.
The Uber said that the conclusion to pull the Uber Eats service out of those countries was, “Made as part of Uber’s ongoing strategy to be in first or second position in all Eats markets by leaning into investment in some countries while exiting others.”
Uber said that the transferred and discontinued markets represented are just 1% of the business and gross bookings.