Uber to cut 3,700 jobs, adding to growing number of tech layoffs
Uber said it will lay off about 14% of its workforce, as the company faces an uncertain future in the face of the coronavirus pandemic.
Uber said it will lay off 3,700 employees, or about 14% of its workforce, as the company faces an uncertain future in the face of the novel coronavirus pandemic.
The San Francisco-based company confirmed in an SEC filing that fewer people are taking rides in the time of COVID-19, and it has implemented a hiring freeze in addition to cutting thousands of jobs from its customer service and recruiting teams.
Uber said it expects to spend about $20 million on severance and other benefits for the laid off employees. CEO Dara Khosrowshahi will not be paid for the rest of the year.
Uber's announcement follows similar cuts by tech companies Lyft and Airbnb, fellows of the on-demand economy that has taken a plunge as people stay at home and try to avoid contact with others.
Lyft said last week it would lay off nearly 1,000 people, or 17% of its staff as the pandemic cuts into its revenue. Airbnb has started cutting 25% of its workforce, or about 1,900 people, CEO Brian Chesky said in an email to employees Tuesday.
Uber will announce its quarterly earnings on Thursday.