Online taxi service provider Uber has decided to remove 3500 people from its workforce or about 14 percent of ride-share-app’s work force or about 14 percent of ride-share-app’s work force. The employees were informed on a zoom video call. This was stated by Ruffin Chevaleau, who is leading the company’s Phoenix Centre of Excellence, in a call that lasted for three minutes. According to the Daily Mail report, Ruffin Chevaleau told the staff that there is a lot of slowdown in business and the company has no work for many employees. Hence, are removing 3,500 frontline employees.
Uber loses $2.9 billion in first quarter
Uber lost $2.9 billion in the first quarter of the current calendar year, from January to March. In fact, the Coronavirus epidemic has adversely affected the company’s investment in foreign markets. The company is cutting the cost to improve its balance sheet. The company later said in a statement, “It’s never easy or uncomplicated to let employees go, and that’s only been more true during this unprecedented period, where we are all working from home across dozens of cities and countries.” We’ve focused on providing the clearest, most empathetic experience possible and have put together a strong severance package and other benefits.
The company last week filed a document with the federal Securities and Exchange Commission saying it planned to lay off 3,700 full-time workers because of the “economic challenges and uncertainty resulting from the COVID-19 pandemic.”
Company CEO Dara Khosrowshahi also agreed to waive the rest of his base salary for the year, the filing said. The exec’s salary was around $1 million last year, although much of his compensation is through stock.