Uber lays off 600 employees in India as coronavirus pandemic leaves its cabs empty
- As a part of its massive global layoff of 6,700 employees,
Uber Indiahas today laid off 600 employees in India.
Uberlost $2.9 billion in the first three months of the year because of the coronaviruspandemic
- Uber’s rival – Ola had earlier announced its layoff impacting 1400 people.
AdvertisementAs a part of its massive global layoff of 6,700 employees, Uber India has today laid off 600 employees in India.
“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber IndiaSA with no choice but to reduce the size of its workforce. Around 600 full time positions across driver and rider support, as well as other functions, are being impacted. These reductions are part of previously announced global job cuts this month,” said Pradeep Parameswaran, President, Uber India and South Asia.
The coronavirus pandemic has hit its businesses globally, as people stay home. Globally, Uber lost $2.9 billion in the first three months of the year because of the coronavirus pandemic.
"I won't sugarcoat it. COVID-19 has had a dramatic impact on rides, with the business down globally around 80% in April,” said CEO Dara Khosrowshahi during the conference call for its earnings.
Since May 3, while Uber resumed its services in India, people have been skeptical of taking cab rides because of the fear of the virus.
“I want to apologize to departing colleagues, and extend my heartfelt thanks to them for their contributions to Uber and the riders and driver partners we serve in India. Each will receive a minimum 10 weeks payout, medical insurance coverage for the next six months, outplacement support, be allowed to retain their laptops and given the option to join the Uber talent directory,” said Parameswaran.
Ride-hailing businesses have been severely impacted with a complete stop in their services since March. Even before the lockdown, as people began social distancing, Uber drivers spoke off barely any riders and a major drop in bookings.
Uber’s rival – Ola had earlier announced its layoff impacting 1400 people. A blog by OLA CEO Bhavish Aggarwal said that the pandemic has hit Ola’s revenues. “Our revenue has come down 95% over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies,” said Aggarwal.
One in four Indians in the working age is unemployed as corporate layoffs continue— making crisis worse and delaying economic recovery
Popular on BI
- Stopped Russian imports in April says Essar Oil
- Elon Musk is confident that humanity will reach Mars in our lifetime
- Vivo ED raids: Two Chinese directors of a related company flee
- RBI tries to boost forex reserves by easing NRI deposit norms
- TCS to flag off the earnings season — here’s what to expect