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.
