SAN FRANCISCO: Taxi service Uber has planned to furlough its 3,700 workers amid due to the coronavirus pandemic.
The move to lay off 3,700 employees, which represents about 14 percent of its 26,900 workforces, as the company’s revenue has been hit hard by coronavirus pandemic, which has claimed more than 2.6 million lives globally.
The was announced in a filing with the Securities and Exchange Commission in the US. “Uber Technologies, Inc. has announced plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the Company’s business,” the company said in a statement.
“Due to lower trip volumes in its Rides segment and the Company’s current hiring freeze, the Company is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles,” the statement read.
The company has estimated that it will incur approximately $20 million related to severance and other termination benefits.
Head of Communications, Uber Pakistan, Hyder Bilgrami, said, “With people taking fewer trips, the unfortunate reality is that there is not enough work for many of our front-line customer support employees.”
“Since we do not know how long a recovery will take, we are taking steps to bring our costs in line with the size of our business today. This was a tough decision, but it is the right one to help protect the company’s long-term health and ensure we come out of this crisis stronger,” he said.
The impact of the coronavirus (COVID-19) is being felt by all businesses around the world. Recently, Airbnb laid off one-fourth of its workforce as the coronavirus pandemic had crushed the travel industry.
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