Uber Cuts 14% of Staff Amid COVID-19 Ridesharing Collapse
Uber lays off 3,700 employees and closes dozens of driver support hubs as the pandemic causes ride volumes to plummet. CEO Dara Khosrowshahi also waives his base salary for the remainder of the year.
Uber cuts 3,700 jobs, reducing its total workforce by approximately 14 percent in response to the economic fallout of the COVID-19 pandemic. The ride-hailing giant details these planned expense reductions in a recent SEC filing, citing significant uncertainty and a massive hit to its business as stay-at-home orders keep non-essential workers at home.
The layoffs primarily affect the company's community operations and recruiting teams. Additionally, Uber closes around 40 percent of its Greenlight locations, which provide in-person support and assistance to drivers, because ride volumes drop substantially and a hiring freeze leaves recruiters with insufficient work.
To demonstrate leadership during the crisis, CEO Dara Khosrowshahi waives his base salary for the rest of 2020. The executive, who earned around $1 million in base pay the previous year, makes this decision in consultation with the company's Board of Directors as Uber navigates an unprecedented period of financial strain.