Uber to cut 20% workforc, 5,400 jobs at risk #coronavirusnewstolive - April 30, 2020 23 0 COMMENTS
New Delhi: After the information of ride-hailing agency Uber shedding 20 per cent of its workforce — greater than 5,400 of 27,000 workers – got here amid COVID-19 pandemic.
Its rival Lyft on Wednesday introduced to terminate 982 workers, representing 17 per cent of its workforce, together with furloughing 288 workers and wage cuts for the remainder.
Lyft mentioned it goals to cut back working bills and modify money flows in mild of the continued financial challenges.
The ride-hailing additionally carried out reductions in base wage for exempt workers for a 12-week interval, starting May, within the vary of 10-30 per cent.
“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 mentioned in a submitting with the US Securities and Exchange Commission (SEC).
Earlier, The Information reported that Uber is about to lay off 20 per cent of its workforce.
Layoffs of that magnitude “could be announced in stages in the coming weeks” at Uber, mentioned the report, as long-serving Uber’s Chief Technology Officer (CTO) Thuan Pham give up the corporate.
Members of Uber’s engineering workforce will carry out Pham’s duties till the corporate finds a everlasting CTO.
The spokesperson instructed Fortune: “As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever”, avoiding a direct tackle the layoff report.
“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”, mentioned the report in The Information on Tuesday.
Going by a turbulent time even earlier than the COVID-19 pandemic hit the world, Uber cut greater than 1,100 jobs final yr.
Earlier this month, the corporate withdrew its monetary forecast for 2020 and mentioned it could write down about $2 billion in investments hit by COVID-19.
Uber is about to report earnings for its first quarter of 2020 on May 7.
In a press release concerning Pham leaving the corporate, Uber CEO Dara Khosrowshahi mentioned: “As the leader of our engineering organization for the last seven years, Pham has made important contributions that have helped make Uber into the global technology platform it is today”.
Shares of Uber had been flat in prolonged Tuesday buying and selling after the inventory closed at $30.12.