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Home » IANS » Uber to cut 20% workforce globally, Lyft to fire 17% staff (Lead)

Uber to cut 20% workforce globally, Lyft to fire 17% staff (Lead)

By IANS
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San Francisco, April 29 (IANS) After the news of ride-hailing firm Uber laying off 20 per cent of its workforce — more than 5,400 of 27,000 employees – came amid COVID-19 pandemic, its rival Lyft on Wednesday announced to terminate 982 employees, representing 17 per cent of its workforce, along with furloughing 288 employees and salary cuts for the rest.

Lyft said it aims to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the company’s business.

The ride-hailing also implemented reductions in base salary for exempt employees for a 12-week period, beginning May, in the range of 10-30 per cent.

“The company estimates that it will incur approximately $28 million to $36 million of restructuring and related charges primarily related to employee severance and benefits costs, the majority of which the company expects to incur in the second quarter of 2020,” Lyft said in a filing with the US Securities and Exchange Commission (SEC).

Earlier, The Information reported that Uber is set to lay off 20 per cent of its workforce.

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.

Members of Uber’s engineering team will perform Pham’s duties until the company finds a permanent CTO.

The spokesperson told Fortune: “As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever”, avoiding a direct take on the layoff report.

“Pham has notified managers who report to him of his plan to leave, which comes as the 3,800-person Uber engineering group could be slashed by nearly 800 people in the coming weeks under the proposed job cuts”, said the report in The Information on Tuesday.

Going through a turbulent time even before the COVID-19 pandemic hit the world, Uber cut more than 1,100 jobs last year.

Earlier this month, the company withdrew its financial forecast for 2020 and said it would write down about $2 billion in investments hit by COVID-19.

Uber is set to report earnings for its first quarter of 2020 on May 7.

In a statement regarding Pham leaving the company, Uber CEO Dara Khosrowshahi said: “As the leader of our engineering organization for the last seven years, Pham has made important contributions that have helped make Uber into the global technology platform it is today”.

Shares of Uber were flat in extended Tuesday trading after the stock closed at $30.12.

–IANS

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(This story has not been edited by Newsd staff and is auto-generated from a syndicated feed.)
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