To cut costs in the face of the severe crisis caused by the Covid-19 pandemic, Uber will cut 3,700 jobs from the recruiting and intelligence teams, according to stock market documents released on Wednesday.
These layoffs represent about 14% of the total number of employees in the chauffeur-driven car reservation business at the end of the year. The company expects a cost of $ 20 million for this operation.
"Uber's business model will likely be very different in the coming years"
In these same documents, Dara Khosrowshahi, the managing director, announces that he renounces for the remainder of the financial year, ended on December 31, 2020, his basic salary, after an agreement with the board of directors. Uber is due to report quarterly results on Thursday. Its main competitor in the United States, Lyft, also announced a 17% cut in the ranks of its employees.
"Today's cuts before tomorrow's results are a painful but unfortunately necessary decision for Dara & Co in the face of the unprecedented situation created by the Covid-19," said Dan Ives of Wedbush Securities. "After this dark period, Uber's business model will probably be very different in the coming years (at least) and the company will have to rationalize its expenses and reduce its activity in order to focus on a profitability objective," adds l 'expert.
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