The multinational ride-hailing company, Uber, has revealed on Wednesday it was cutting 3,700 jobs amid a huge slump in its ride-hailing operations during the Coronavirus pandemic.
The cuts amount to about 14 per cent of Uber’s global workforce, which does not include its contract drivers.
The company made the announcement in a regulatory filing, which also said Chief Executive Dara Khosrowshahi would waive his base salary for the remainder of the year.
The move comes a day ahead of Uber’s earnings report and follows a 17 per cent staff cut by its US rival Lyft.
“Today’s cost-cutting move ahead of tomorrow’s earnings is a painful, but unfortunately a necessary, move for Dara & co. to make in this unprecedented COVID-19 environment,” said Daniel Ives at Wedbush Securities.
“On the other side of this dark valley, the Uber business model will likely look a lot different for the next few years (at least) and the company must rationalize costs and a smaller operation to focus on attaining profitability in this ‘new normal’ backdrop.”