The management of the international taxi and road transport service Uber Technologies announced the reduction of almost 3.7 thousand employees, as the demand for rides fell sharply in the crisis caused by the coronavirus pandemic. This is on Wednesday, May 6, according to Market Screener.
At the end of 2019, Uber employed almost 26,900 employees. Thus, the reduction will be about 14%.
In addition, the company’s Executive Director, Dara Khosrowshahi, agreed not to receive his salary until the end of 2020.
According to research firm Edison Trends, by April 20, spending on rides through Uber apps in the US had fallen by 85% per week compared to last year.
According to Uber management, the company will pay the dismissed employees a total of about $20 million in severance payments.
On March 12, it was reported that Uber plans to temporarily block the accounts of drivers and customers infected with the coronavirus in the United States. When making decisions about blocking accounts, company employees will need to consult with an epidemiologist.