May 6, 2020

Uber axes 3,700 staff as trips drop in lockdowns

Uber has announced plans to cut 3,700 full-time staff - about 14% of its workforce - as business plunges following pandemic shutdowns. Uber said the reductions will come from its customer support and recruiting teams and would result in $20m in severance pay and other costs. Executives in March warned the firm had seen demand for its taxi services fall by more than 60% in Covid-19 hotspots, though they said ordering via its Uber Eats food delivery service had increased. At the end of last year, Uber had already paid out $149m to settle individual claims on the subject. Analyst Dan Ives of Wedbush Securities called the job cuts "Painful but necessary", noting that both Uber and Lyft face long-term difficulties as more people work from home and avoid taxis for fear of infection.

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