Uber to cut 14 percent of its global workforce due to COVID-19 pandemic

The company's CEO says he is going to forgo his base salary for the rest of the year

Uber is going to cut 3,700 full-time jobs and close 180 driver service centres due to the impacts of the COVID-19 pandemic.

The company’s CEO, Dara Khosrowshahi, sent an email to Uber employees on May 6th stating that the reductions will impact 14 percent of its global workforce.

The cuts will mainly impact those who work in support and recruiting. The email noted that ridership has significantly decreased, and that Uber will continue its hiring freeze.

Uber is also shutting down 40 percent of its driver service centres around the world, which is where the company trains its drivers to use the app and address problems that may occur while on the job.

As of December 31st of last year, Uber had 26,900 employees around the world. It has already slashed numerous jobs at its Middle East unit, as Reuters reported earlier this week that Uber cut 31 percent of its Dubai-based workforce.

Uber Eats, the company’s food delivery service, has also taken a hit due to the pandemic, as it is going to halt operations in Egypt, Romania, Saudi Arabia, Ukraine, Uruguay and the Czech Republic by June 4th.

These recent cuts are the first cost-cutting measures to be announced by Uber, but it is expected to take more action in the next two weeks.

Source: Reuters