This archive report was first published on 6 May 2020.
On May 6, 2020, Uber Technologies announced that it would be cutting approximately 3,700 full-time jobs, including its customer support and recruiting teams, as the COVID-19 pandemic severely impacts its ride-hailing business.
The company's Chief Executive Officer, Dara Khosrowshahi, will forgo his base salary for the remainder of the year. Uber expects to incur about $20 million in costs for severance and related charges.
Uber and its rival, Lyft, have already withdrawn their full-year financial outlooks due to the sharp decline in demand for app-based rides following government-imposed stay-at-home orders to curb the transmission of the coronavirus.
However, Uber's food delivery business may help recover some lost revenue. The company operates in more markets around the world than Lyft.
Uber shares opened 3 per cent lower on the day of the announcement.
On the same day, Uber's Middle East business, Careem, announced that it would be cutting 536 jobs, representing 31% of the Dubai-headquartered company's workforce.
