New Delhi: Ride hailing app Uber on Thursday said that it is going to lay off 3,700 employees in the wake of economic challenges and uncertainty resulting from the COVID-19 pandemic.
In its regulatory filing to United States Securities and Exchange Commission, Uber mentioned that the company “plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the COVID-19 pandemic and its impact on the Company’s business”.
“Due to lower trip volumes in its Rides segment and the Company’s current hiring freeze, the Company is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles,” the taxi aggregator said.
Uber has also estimated that it will incur approximately $20 million related to severance and other termination benefits.
“The Company is evaluating other cost and will provide an update in subsequent SEC disclosures regarding such amounts, if material,” it said.
Meanwhile, Dara Khosrowshahi, the Company’s Chief Executive Officer, has agreed to waive his base salary for the remainder of the year ending December 31, 2020, Uber said.