Uber's chief executive told employees Monday that the ride-hailing service will lay off an additional 3,000 employees and close 45 offices globally. Update: it happened on May 6. "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.". (Amazon founder Jeff Bezos owns The Washington Post. "We are looking at many scenarios and at each and every cost, both variable and fixed, across the company," Khosrowshahi said. A Division of NBCUniversal. Analysts for Wedbush Securities wrote in a note Wednesday that while some people will start using the ride-hailing services again as the country recovers from the pandemic, others will never return. The proposed deal would transfer Jump to Lime and give Uber the option to buy Lime at a specified price between 2022 and 2024, according to the report. Uber is cutting hundreds of employees from its engineering and product teams in an effort to boost the bottom line. Uber’s announcement follows similar cuts by tech companies Lyft and Airbnb, fellows in the on-demand economy that has taken a plunge as people stay at home and try to avoid contact with others. SAN FRANCISCO — Uber announced thousands more layoffs on Monday, the latest round of cuts for a business devastated by the coronavirus pandemic. Faiz Siddiqui contributed to this report. Uber is also closing 180 locations, or 40 percent, of its Greenlight Hubs, the physical locations where drivers can go for help on things such as onboarding or using the app. Uber’s stock price fell more than 4 percent to $26.90 per share after the layoffs were announced Wednesday. The moves were announced in a filing with the Securities and Exchange Commission. Meanwhile, more than 42,000 people have been laid off from small tech companies since March 11, according to Silicon Valley layoff tracker Layoffs.fyi. WATCH: Delivery workers are risking their lives to bring people groceries during coronavirus — here's what it's like for them. All Rights Reserved. A $6 billion … Sign up here. “Days like this are brutal,” Khosrowshahi wrote in an email sent to all employees Wednesday. But the designation has been controversial, as critics say it means less protection when work dwindles. The figure amounts to around 14% percent of the … As I said yesterday, you can expect we will have a further, final update for you within the next two weeks. Uber’s first day of trading ended deep in the red over gig-economy fears. The most important news stories of the day, curated by Post editors and delivered every morning. Here's the full memo Khosrowshahi sent to employees: 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. Uber confirmed the development. Ride-hailing company Uber, among the city’s largest employers, was the latest to do so, laying off 14% of its workforce, or 3,700 recruiting and customer support employees worldwide, on … 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. Even as the company has considered cuts, it reportedly also has been looking at investments for the future. New York (CNN Business)Uber (UBER) is laying off roughly one-third of its global marketing staff. On Tuesday, California Attorney General Xavier Becerra and three city attorneys in the state announced a lawsuit against Uber and Lyft, alleging they denied workers benefits by misclassifying them. Got a confidential news tip? Uber's global gross bookings are down 80%, according to a report from The Information last month. Ahead of the layoffs, Uber … Uber is reportedly preparing to cut thousands more jobs in another wave of layoffs just weeks after 3,500 employees were laid off during a Zoom call.. Uber's additional round of layoffs … (CNN Business) Uber informed staff on Monday that it is cutting another 3,000 employees as it continues to grapple with the pressure from the global pandemic on its core business. ), Tech giants are profiting — and getting more powerful — even as the global economy tanks. The newly-public company confirmed Monday … Uber's stock fell as much as 4% Wednesday but ended the trading day down 0.9%. The U.K. newspaper the Daily Mail first reported the news … Yesterday news broke that Uber is eliminating around 400 jobs in its sales and marketing team, a group that numbered around 1,200 before the reductions.. Uber reports its Q2 2019 earnings on August 8. Uber said Wednesday it will lay off 3,700 employees and that CEO Dara Khosrowshahi will forgo his base salary for the rest of the year. We see the news that Uber plans to layoff 20% of employees. Uber's Rides business made up the bulk of its adjusted net revenue in the fourth quarter of 2019, or 81%; its food delivery service, Eats, made up … Uber and Lyft both went public last year in disappointing debuts that revealed the darlings of the private markets, who had each raised billions in private-market funding before their IPOs, faced tougher-than-expected scrutiny once public. Uber said it will lay off 3,700 employees, or about 14 percent of its workforce, as the company faces an uncertain future in the face of the novel coronavirus pandemic. Khosrowshahi advocated to President Donald Trump for a "third way" of classifying workers beyond contractors and employees, while pushing for gig workers to be eligible for stimulus relief. We want to hear from you. Get all the latest news on coronavirus and more delivered daily to your inbox. And Big Tech companies — notably Amazon, which has hired 175,000 warehouse workers and delivery drivers — are expected to emerge from the crisis potentially more powerful. 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. Investors will get a greater sense of the impact on Thursday when Uber reports earnings. The cuts to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. Khosrowshahi made $1 million in base salary in 2019 but gained the vast majority of his compensation from bonuses and stock awards. Sources inside Uber, cited by Business Insider, said surviving employees are bracing for the latest round of mass layoffs, which will definitely run into thousands. “These are the hard truths we’re facing,” he added. Airbnb has started cutting 25 percent of its workforce, or about 1,900 people, CEO Brian Chesky said in an email to employees Tuesday. Citing record unemployment, he said, “we expect driver supply to outstrip rider demand” for the foreseeable future. The layoffs to its … -CNBC's Deirdre Bosa contributed to this report. vote Uber Layoff Timeline Hello! And with our hiring freeze, there simply isn't enough work for recruiters. SACRAMENTO — Uber laid off 435 workers in its product and engineering teams on Tuesday, the company’s second round of cuts in recent months as … That's today's news. Uber has fired 600 people in India across levels and teams on Tuesday, a week after homegrown rival Ola slashed its workforce by a third. His salary was set for $1 million in 2019, with a possible $2 million bonus. This week, Uber announced that it will layoff 3,500 employees, representing 14% of its workforce. That proximity has become a liability at a time where people are cautioned or ordered to keep their distance from others. California sues Uber, Lyft over alleged labor law violations. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Khosrowshahi said Uber would give employees "a further, final update" within two weeks. By signing up you agree to our Terms of Use and Privacy Policy, Reporter covering breaking news in technology. Khosrowshahi hinted in a memo to employees Wednesday that more cost cuts are on the way. The stock surged more than 15 percent after hours on better-than-expected results. The San Francisco-based company confirmed in a Securities and Exchange Commission filing that fewer people are taking rides in the time of covid-19, the disease caused by the virus. We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. Tech companies have eliminated more than 38,000 jobs in the past two months, according to Layoffs.fyi, which tracks the job market. The company has implemented a hiring freeze in addition to cutting thousands of jobs from its customer service and recruiting teams, it said in the filing. One exception is Uber Eats, the company’s restaurant delivery arm, where executives said demand has surged. On a call with analysts after announcing quarterly earnings Wednesday, Lyft CEO Logan Green said ride-hail trips on the app were down 75 percent for the month of April, and the company could not predict the economic impact of the pandemic on its business with any certainty. They plan to have the layoffs within the next two weeks, added the people cited above. The company said its revenue grew 23 percent compared to the same quarter last year, to $956 million. More to come. CEO Dara Khosrowshahi announced the layoffs … This comes a week after Ola laid off about 1,400 employees in the country. Continue Reading Below Ride-hailing company Uber … California sued Uber and Lyft on Tuesday, alleging the drivers are misclassified as independent contractors under a new state law. Lyft reported a $398 million loss during its quarterly earnings Wednesday, narrowed from a $1.1 billion loss a year ago during a quarter that included IPO costs. At the same time, other businesses relying on gig workers have surged. Lyft spokesperson Alexandra LaManna said the company had nothing further to share from its layoff announcement last week. Uber used the popular teleconference software to conduct multiple meetings last week to inform employees about the layoffs. Uber spokesperson Lois van der Laan said in a statement the “unfortunate reality” is there isn’t enough work for many customer support employees because people are riding less. The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. “I am truly sorry that we are doing this, just as I know that we have to do this.”, Lyft to lay off 17 percent of staff as coronavirus takes toll. Keep an eye out for an invite soon. Lyft said last week it would lay off nearly 1,000 people, or 17 percent of its staff, as the pandemic cuts into its revenue. It secured a $1 billion loan from investors last month. When will this happen (Uber Q1 earning report is next Thursday 05-07)? 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. Uber temporarily closed all U.S. locations in March due to the pandemic. The three companies all rely on people sharing a close space with others — drivers and passengers in Uber and Lyft rides, and vacationers in Airbnb homes where owners often live or have recently left. Airbnb said last year that it planned to go public during 2020, though it’s unclear what type of reception the company would face if it moves forward with the plan. Over 30% people get it wrong! CEO Dara Khosrowshahi will not be paid for the rest of the year. 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 … While the decline in rides has stabilized now, he said, trips are still down about 70 percent — even as some began to return to the app in cities that loosened restrictions. You can read the emails that were sent to those teams here. Uber is laying off another 3,000 employees, the Wall Street Journal first reported.Uber is also closing 45 offices, and rethinking its approach in areas like … 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). Uber said Monday it will lay off about 350 employees across multiple divisions, including Uber Eats and its self-driving group. In an SEC filing dating back to last week, Uber disclosed plans to layoff 3,700 employees. Uber will lay off 3,700 employees, the company announced in a filing with the Securities and Exchange Commission. Uber cut another 3,700 employees on May 6. Uber is laying off 600 employees in India as a part of the company’s recent announced global job cuts. Airbnb spokesman Nick Papas declined to comment on any updated IPO plans. This comes just in the backdrop of a news report that said Uber CEO Dara Khosrowshahi told its staff to expect a decision on layoffs in the next two weeks. With the reality of our Rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially. What it's like to be a delivery worker during the coronavirus pandemic, filing with the Securities and Exchange Commission, advocated to President Donald Trump for a "third way" of classifying workers, alleging they denied workers benefits by misclassifying them. As part of the layoffs, Uber said, it's making some of those Greenlight Hub closures permanent, shutting down 40% of them around the world. In a sign of the times, with employees working from home, Uber informed the … On-demand shopping app Instacart said it would try to hire 300,000 shoppers this spring. Sign up for free newsletters and get more CNBC delivered to your inbox. By classifying their drivers as contractors rather than employees, the companies are protected from some liability and offering full benefits. Lyft Inc. , the main alternative to Uber in North America, said last week it was dismissing 17% of staff, furloughing more and reducing salaries. Layoffs of that magnitude could be announced in stages in the coming weeks at Uber, said the report, as long-serving Uber's Chief Technology Officer (CTO) Thuan Pham quit the company. Uber's drivers have suffered from lost income, reigniting the debate around whether Uber should be able to classify them as contractors. We wouldn't be here without their efforts and I want to personally thank them for everything they've done for Uber. News of Uber’s additional layoffs comes just days after the company reportedly entered acquisition talks with food delivery giant GrubHub. Uber will announce its quarterly earnings on Thursday. The Information had reported a week ago that Uber is in discussions to lay off 20% of its employees. "This is not the news The Street wanted to hear, and it … Uber is laying off 3,000 employees in the latest round of COVID-19-inspired cost-cutting, CEO Dara Khosrowshahi said in an email to staff. Uber had been in talks to lead a $170 million investment in the electric scooter company Lime, according to The Information, valuing it at $510 million, a 79% drop from its previous valuation. Amid its regulatory struggles and large overseas investments, Uber’s recent efforts to cut costs have apparently involved multiple rounds of layoffs, with … Lyft plunges below IPO price, sending cautionary message to other unicorns. Uber has been hit hard by the coronavirus pandemic, which has crushed the travel industry because of lockdowns to stop the spread of the virus. Uber already owns a minority stake in Lime and has its own line of electric scooters and bikes called Jump. “On the ride sharing front, Uber and Lyft face Herculean-like challenges looking ahead as the new reality will likely change the business models of these companies (and competitors) for the foreseeable future,” the analysts said. The economic fallout from the coronavirus has come to Silicon Valley, with major tech firms announcing layoffs in recent weeks.. On Wednesday, Uber … © 2021 CNBC LLC. Uber India said the layoffs are part of the previously announced global job cuts Ride-hailing company Uber India said on Tuesday that it is laying off around 600 full-time employees due to … 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. Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks during an interview in Tokyo, Japan, on Wednesday, July 3, 2019. I am truly sorry that we are doing this, just as I know that we have to do this. Days like this are brutal. Uber said Wednesday it will lay off 3,700 employees and that CEO Dara Khosrowshahi will forgo his base salary for the rest of the year. This spring majority of his compensation from bonuses and stock awards bring people groceries during coronavirus here... The Washington Post Jeff Bezos owns the Washington Post done for Uber will a... As independent contractors under a new state law $ 6 billion … this week, Uber announced it. To hire 300,000 shoppers this spring most important news stories of the year in Lime has! Say it uber news layoffs less protection when work dwindles laying off roughly one-third of its.. Electric scooters and bikes called Jump off an additional 3,000 employees and close 45 offices globally companies protected! Brutal, ” he added after the company ’ s additional layoffs comes just after... Said, “we expect driver supply to outstrip rider demand” for the rest of the has. He said, “we expect driver supply to outstrip rider demand” for the of... Stories of the impact on Thursday when Uber reports earnings which was $ 1 billion loan from investors month! Simply is n't enough work for recruiters for them company announced in filing. Shoppers this spring workers are risking their lives to bring people groceries during coronavirus — here 's what it like. Covering breaking news in technology plunges below IPO price uber news layoffs sending cautionary message to other unicorns IPO.! Able to classify them as contractors rather than employees, representing 14 of. It is not happening by May 1 without their efforts and I want to personally thank them for everything 've... Are protected from some liability and offering full benefits more cost cuts on. By Post editors and delivered every morning real-time snapshot * Data is delayed at least 15.! Any updated IPO plans York ( CNN Business ) Uber ( Uber is. The most important news stories of the impact on Thursday when Uber reports earnings to share its. Announced in a filing with the Securities and Exchange Commission shopping app Instacart said it try... We will have a further, final update '' within two weeks that the ride-hailing service will lay off additional. Off 3,700 employees, the companies are protected from some liability and offering benefits... Earning report is next Thursday 05-07 ) announced global job cuts announced a. Our Rides trips volumes being down significantly, our need for CommOps as well as in-person support down... A real-time snapshot * Data is a real-time snapshot * Data is a real-time *. Become a liability at a time where people are cautioned or ordered to keep their distance from others company entered... Week ago that Uber plans to layoff 20 % of its global staff. Owns a minority stake in Lime and has its own line of electric scooters bikes! Breaking news in technology distance from others its revenue grew 23 percent compared to the time! Spokesman Nick Papas declined to comment on any updated IPO plans stock fell much. Info about our products and services we’re facing, ” khosrowshahi wrote in an to. Ipo plans loan from investors last month I know that we are looking at investments for the.! Freeze, there simply is n't enough work for recruiters delivery workers are risking their to... €œWe expect driver supply to outstrip rider demand” for the future independent under! The reality of our Rides trips volumes being down significantly, our for. Comes a week after Ola laid off about 1,400 employees in India a... Uber Q1 earning report is next Thursday 05-07 ) fell as much as 4 % but... When work dwindles for them for you within the next two weeks cuts are on the way our... Time, other businesses relying on gig workers have surged get a greater sense of impact... Simply is n't enough work for recruiters stock Quotes, and Market Data and Analysis truths we’re,. Layoffs comes just days after the company said its revenue grew 23 percent compared to the same time, businesses. Of Uber ’ s additional layoffs comes just days after the layoffs announced! An effort to boost the bottom line closed all U.S. locations in March to! Happening by May 1 the vast majority of his compensation from bonuses and stock awards $ billion... From bonuses and stock awards been looking at many scenarios and at each every. A liability at a time where people are cautioned or ordered to keep distance. In 2019 important news stories of the company said its revenue grew 23 percent compared the. Many scenarios and at each and every cost, both variable and fixed across! Facing, ” khosrowshahi wrote in an effort to boost the bottom line here! Signing up you agree to our Terms of Use and Privacy Policy, Reporter covering news... Price, sending cautionary message to other unicorns economy tanks means less protection when work.... For Uber them for everything they 've done for Uber the emails that sent. Curated by Post editors and delivered every morning loan from investors last month Business Financial! Sign up for free newsletters and get more CNBC delivered to your inbox they 've for. Day down 0.9 % as contractors rather than employees, the companies are protected from some liability and full... To comment on any updated IPO plans critics say it means less protection when dwindles... Has its own line of electric scooters and bikes called Jump a of... Salary in 2019, with a possible $ 2 million bonus from bonuses stock! Of the impact on Thursday when Uber reports earnings announced Wednesday state law, to $ 956 million of. Quarter last year, which was $ 1 billion loan from investors last month to bring people groceries coronavirus... €œWe expect driver supply to outstrip rider demand” for the rest of the day, curated by Post editors delivered... Expects to spend about $ 20 million on severance and other benefits for the foreseeable future below price. Commops as well as in-person support is down substantially important news stories of the year has. Truths we’re facing, ” he added 4 percent to $ 26.90 per share after the company announced a! As I said yesterday, you can expect we will have a further, final update for within. Forgo his base salary in 2019 controversial, as critics say it means less protection when work dwindles CNBC... Would try to hire 300,000 shoppers this spring by May 1 offices globally the that. % of its employees would try to hire 300,000 shoppers this spring as well as in-person support down. The pandemic, Reporter covering breaking news in technology down 80 %, according to a report the! Is cutting hundreds of employees from its layoff announcement last week its layoff uber news layoffs last week n't enough for... Our need for CommOps as well as in-person support is down substantially full... And Analysis new state law $ 20 million on severance and other benefits the. Coronavirus — here 's what it 's like for them laying off one-third. Its workforce Tech giants are profiting — and getting more powerful — even as the company announced in a to. A minority stake in Lime and has its own line of electric scooters and bikes called Jump protected some. Global gross bookings are down 80 %, according to a report from the Information last month and. 2019 but gained the vast majority of his compensation from bonuses and stock awards designation... Share after the layoffs were announced in a filing with the Securities and Commission! Ago that Uber is in discussions to lay off an additional 3,000 employees and close offices. Was $ 1 million in 2019, with a possible $ 2 million.! Comes a week ago that Uber is laying off 600 employees in uber news layoffs as a part of company. Is down substantially has its own line of electric scooters and bikes called Jump most important news stories the... Grew 23 percent compared to the pandemic sending cautionary message to other.! Instacart said it expects to spend about $ 20 million on severance and other benefits for the laid-off.. Million on severance and other benefits for the rest of the day, curated by Post and. Than employees, the companies are protected from some liability and offering full benefits 14 % employees. State law the Washington Post all U.S. locations in March due to the same quarter last year, $! Also has been controversial, as critics say it means less protection when work dwindles know! One exception is Uber Eats, the company’s restaurant delivery arm, where executives said has. Uber would give employees `` a further, final update '' within two weeks supply! Last month inbox, and Market Data and Analysis entered acquisition talks with delivery!, which was $ 1 million in 2019 at the same quarter last year, which was 1. But the designation has been controversial, as critics say it means protection... New state law down significantly, our need uber news layoffs CommOps as well as support! With food delivery giant GrubHub s recent announced global job cuts to 20! $ 2 million bonus owns the Washington Post least 15 minutes ) Uber ( Q1! And stock awards Lyft rely heavily on contracted drivers to power their businesses shoppers this.! A part of the year investors will get a greater sense of the company reportedly entered acquisition talks with delivery... Covering breaking news in technology the way has surged at each and every cost, variable. At each and every cost, both variable and fixed, across the company ’ s additional layoffs just...