Karim, the private taxi services company in the Middle East, has announced that it will lay off 536 employees, representing 31 percent of its workforce, due to the effects of the emerging Corona virus.
Chief Executive Officer of "Kareem" Company, Muddathir Sheikh, said in a statement published late Monday, "starting tomorrow, and for the next three days," Kareem "will leave 536 male and female colleagues, or 31% of the company’s total employees."
In the context of the measures taken to stop the outbreak of the new Corona virus, most countries in the Middle East and North Africa region have closed all-out, causing obstruction to work, especially in the private sector.
Many companies in the region have resorted to layoffs or cut their salaries, while some have asked employees to take unpaid leave.
Karim’s decision came shortly after its owner, Uber, announced that it would stop its food delivery services, Uber States, in seven countries, including Saudi Arabia, next month, as part of a strategic move for the company that was hit hard as people stayed home. Because of the Covid-19 pandemic.
According to Shaikha, "Karim" has in recent weeks reduced or halted unnecessary expenses, "but unfortunately it was not enough."
The company will also stop the "Bus Cream" mass transit service.
And a sheikh said that every laid-off employee will receive a "reward of no less than three months' salary for the termination of his service and one month of entitlement to shares."
Karim was established in 2012 and is headquartered in Dubai.
In 2019 Uber acquired Karim for $ 3.1 billion in the largest technology acquisition in the region.