Uber just announced it will fire 3700 workers and that Dara Khosrowshahi, the company's CEO, will pay off the rest of the year, according to a letter from the manager to all staff.
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The dismissal will focus on customer service and their recruitment team, which represents about 14% of its 26,900 employees, according to the latest Uber figures.
On his behalf, Khosrowshahi earn one million dollars as a base salary in 2019But he earns most of his salary from his bonuses and stock awards.
This new provision was announced in a presentation to the Securities and Exchange Commission. Uber shares fell more than 3% on Wednesday, as the company hit the COVID-19 outbreak, making Uber's global savings fall 80% last month.
Khosrowshahi warned in a memo to workers on Wednesday that more cost reductions are on the way:
"We analyze many scenarios and each cost, both fluctuating and fixed, across the company. We want to be smart, move fast, retain as many people as we can, and treat everyone with dignity, support, and respect."
Khosrowshahi said Uber will provide "one last update" to employees in the next two weeks. Additionally, Uber drivers have suffered a loss of income, and have begun debates over whether Uber should be able to classify it as a hired laborer.