Uber India fires 25% of its workforce: Details here
What's the story
In another blow to the salaried section, Uber India has laid off 600 employees or nearly a quarter of its workforce in the country. The decision came in light of the economic uncertainty stemming from the COVID-19 pandemic, which has forced several other companies, including Uber's rival Ola, to either cut jobs or close operations. Here is more about it.
Details
Layoff a part of already-announced downsizing plan
Uber's CEO Dara Khosrowshahi sent an email informing employees about the layoff and said the decision is part of the already-announced downsizing effort that aims to cut 6,700 jobs across company divisions around the world to reduce costs. He added, in India, the move will affect employees in customer and driver support, business development, legal, finance, policy, and marketing verticals.
Quote
Here's a statement from Pradeep Parameswaran, President Uber India
"The impact of COVID-19 and the unpredictable nature of the recovery has left Uber India with no choice but to reduce the size of its workforce. Around 600 full-time positions across driver and rider support, as well as other functions, are being impacted."
Benefits
Affected employees will be entitled to certain benefits
All affected employees, Uber says, will be entitled to at least 10-12 weeks' salary, medical insurance for six months, outplacement support, and company-provided laptops. "Today is an incredibly sad day for colleagues leaving the Uber family and all of us at the company," Parameswaran added. "I want to apologize to departing colleagues and extend my heartfelt thanks to them for their contributions to Uber."
Impact
Rides business significantly affected due to COVID-19
In the wake of COVID-19, Uber's rides business has gone down by more than half. Now, as countries, including India, ease restrictions to allow cab movement, the company is hoping to get things back on track while preserving cash, through cost-cutting measures, to brace for further uncertainties. "We made the decision now so that we can look to the future with confidence," Parameswaran emphasized.
Competitor
Ola laid off 1,400 employees
Ola, Uber's main competitor in India, has not been spared by the COVID-19 crisis, either. The company recently said its revenue came down by 95% over the past two months and has, therefore, decided to relieve 1,400 employees - 35% of its total workforce - from their duties to preserve cash and "emerge stronger in the long run".