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  4. Uber to layoff 20 per cent workforce globally as lockdown hits industry hard

Uber to layoff 20 per cent workforce globally as lockdown hits industry hard

Going through a turbulent time even before the COVID-19 pandemic hit the world, Uber cut more than 1,100 jobs last year. Earlier this month, the company withdrew its financial forecast for 2020 and said it would write down about $2 billion in investments hit by COVID-19.

India TV Business Desk Edited by: India TV Business Desk
New Delhi Published on: April 30, 2020 8:25 IST
uber layoffs
Image Source : AP

Uber to cut 20% workforce globally, Lyft to fire 17% staff 

Uber has announced to layoff 20 per cent of its workforce globally, which would account for more than 5,400 out of a total of 27,000 employees across the world. The decision came amid the COVID-19 pandemic as the lockdown due to coronavirus has hit the travel and transport industry hard. The ride-hailing also implemented reductions in base salary for exempt employees for a 12-week period, beginning May, in the range of 10-30 per cent.

Uber's Chief Technology Officer (CTO) Thuan Pham has already announced his stepping down from the company, due to the lockdown impact. Members of Uber's engineering team will perform Pham's duties until the company finds a permanent CTO.

"Pham has notified managers who report to him of his plan to leave, which comes as the 3,800-person Uber engineering group could be slashed by nearly 800 people in the coming weeks under the proposed job cuts", said a report in The Information on Tuesday.

Meanwhile, Uber's rival Lyft on Wednesday announced to terminate 982 employees, representing 17 per cent of its workforce, along with furloughing 288 employees and salary cuts for the rest.

Lyft said it aims to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company's business.

"The company estimates that it will incur approximately $28 million to $36 million of restructuring and related charges primarily related to employee severance and benefits costs, the majority of which the company expects to incur in the second quarter of 2020," Lyft said in a filing with the US Securities and Exchange Commission (SEC).

Going through a turbulent time even before the COVID-19 pandemic hit the world, Uber cut more than 1,100 jobs last year.

Earlier this month, the company withdrew its financial forecast for 2020 and said it would write down about $2 billion in investments hit by COVID-19.

Uber is set to report earnings for its first quarter of 2020 on May 7.

Shares of Uber were flat in extended Tuesday trading after the stock closed at $30.12.

Also Read | Uber CTO Thuan Pham steps down as lockdown hits transport industry

Also Read | Uber to provide Rs 25 crore in grants to driver partners in India​

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