With Coronavirus affecting a lot of Uber activities, the hailing app has seen a massive drop in the number of drivers which has resulted in a significant hit in the finances and as a result, over 3000 workers could lose their jobs.
The business has been devastated by the pandemic and a company filing on Wednesday revealed around 3,700 roles will be cut from its global workforce – roughly 14% of its 26,900 employees.
The drivers will not be affected by the cuts that Uber is planning to make. Those who are working in customer care and support could see their jobs on the line though.
Why does Uber Want to Make Staff Layoffs?
This should not come as a surprise considering that majority of the nations in which Uber operates, have instituted lock down measures which means that there is no business that is going on. A case in point is Uganda where only essential vehicles are being allowed to move at anyone given point in time.
The company expects to incur about $20 million in costs for severance and related charges, the filing revealed. At the end of April it was reported that the business’ global gross bookings from ride hailing were down 80% from a year ago according to the Informative.
The informative also reported that Khosrowshahi said if Uber did experience an 80% drop in rides for the rest of the year, the business would still have $4 billion in cash left over.
Uber has frozen all hiring activities across the globe as they continue to monitor the state of affairs as regards to the Coronavirus pandemic which has affected so many economic activities.
A lot more cuts of jobs is expected within the company as Uber CEO Khosrowshahi says that “We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. We want to be smart, to move fast, to retain as many of our great people as we can, and treat everyone with dignity, support and respect.”
Author: Moses Echodu
Moses is an avid Sports and Tech enthusiast. He loves to keep up to date with all the latest information and research on some of the most compelling stories.