Slashing costs as ridership falls. “There are some who will not get into a car for the next one to three years,” one analyst said.
Uber is laying off 3,700 employees in its customer service and recruiting departments as the number of ride-sharing passengers have plunged during the coronavirus pandemic. The cuts hit about 15% of the company’s full-time staff.
Uber has also instituted a hiring freeze, the company said in a regulatory filing on Wednesday, and CEO Dara Khosrowshahi will forgo his salary for the rest of the year. Uber expects to spend roughly $20 million on benefits owed to the laid-off employees.
Uber is preparing itself now for the harsh reality that it won’t recover all its customers once the pandemic ends, said Wedbush Securities analyst Dan Ives.
“There’s so much uncertainty when it comes to this virus,” Ives said. “There are some who will not get into a car for the next one to three years.
