Uber said Wednesday, that it is laying off 3,700 employees, or about 14% of its staff, as the ride-hail giant reels from the pandemic and an ongoing battle over worker protections. And CEO Dara Khosrowshahi will also forgo his base salary for the rest of the year, which was $1 million in 2019.
The company said layoffs included its customer support and recruiting teams, and expects to incur about $20 million in costs for severance and related charges. The company announced these moves in a filing with the Securities and Exchange Commission.
Khosrowshahi said, “We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. We want to be smart, to move fast, to retain as many of our great people as we can, and treat everyone with dignity, support, and respect.”
Khosrowshahi hinted in a memo to employees that more cost cuts are on the way and said Uber would give employees “a further, final update” within two weeks.
Here’s the full memo Khosrowshahi sent to employees:
Team Uber,
I wanted to let you know that we just announced the elimination of around 3,700 roles in CommOps and Recruiting and the closure of 40% of our Greenlight locations. You can read the emails that were sent to those teams here.
With the reality of our Rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially. And with our hiring freeze, there simply isn’t enough work for recruiters.
This is not in any way a reflection of these employees’ efforts or contributions to getting us to where we are, as a service that everyone associates with movement and earnings opportunities. We wouldn’t be here without their efforts and I want to personally thank them for everything they’ve done for Uber.
We have worked hard to put together generous severance packages with a longer period of healthcare coverage to help provide a bridge, and we are also supporting EXTs whose roles are affected by today’s decision.
That’s today’s news. But, as I said at yesterday’s All Hands, this is one part of a broader exercise to make the difficult adjustments to our cost structure (team size and office footprint) so that it matches the reality of our business (our bookings, revenue and margins). We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. We want to be smart, to move fast, to retain as many of our great people as we can, and treat everyone with dignity, support and respect. As I said yesterday, you can expect we will have a further, final update for you within the next two weeks.
Days like this are brutal. I am truly sorry that we are doing this, just as I know that we have to do this. And while it’s easier said than done, we have to keep our heads down and keep executing, because that—and nothing less—is what will keep Uber going and get us to the other side.
Given this news, and since we have Q1′20 earnings tomorrow, I thought it would be good to get everyone together again on Friday for a Global All Hands, where we can walk through our financial results and today’s changes, and can continue to answer your questions as openly as possible. Keep an eye out for an invite soon.
UberOn,
Dara
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