One year after its IPO, Uber is in turmoil. The significant slowdown in its activities pushes the firm to launch a massive layoff plan. It will cut 3,700 jobs, or 14% of its workforce. The boss, Dara Khosrowshahi, announces that she will give up her basic salary until the end of the year.
Since the start of the health crisis, Uber has been in turmoil. The giant of the sector is at a standstill and records heavy financial losses. He says he will cut 3,700 jobs from the recruiting and customer intelligence teams. The layoff campaign is expected to cost the company approximately $ 20 million, including severance pay. A company spokesperson explains to The Verge. “Since we don’t know how long it will take to get back into business, we are taking steps to align our costs with the size of the business today. This decision was difficult to make, but it is necessary to protect the company in the long term and make sure we get out of this crisis stronger ”. The firm also announces the permanent closure of 180 Greenlight Hub, centers that allowed to register to be a driver. She said that since the volume of travel was decreasing, there was not enough work for the people employed in these control centers. To participate in the effort, the group’s boss announced that he would give up his basic salary until December 31.
For those who have to travel, we remain mobilized. 100,000 trips and meals offered to nursing home staff. Do you work in nursing homes?
Register on https://t.co/opEyBRJLNM #Stay home #MoveWhatMatters pic.twitter.com/Yhk4FDvOvd
– Uber France (@UberFR) April 15, 2020
The crisis will have largely thwarted the plans of the firm, which planned to be profitable by the end of the year. Uber was already recording colossal losses, with $ 8.5 billion in 2019. His first year on the stock market has not been easy, and it is not going to be easy. The firm’s stock fell 50% in a month. On March 18, it ruled at $ 14.82 before starting a slight recovery. Today, it is at 27.82 dollars. At the same time, the firm announced that it would support nursing staff during this period of crisis. It launched Uber Medics, the option that allows all healthcare workers to make their commuting easier. The service fees are fully refunded and Uber X races are offered at -25%.