Uber cut another 3,700 employees on May 6. Uber will lay off 3,700 employees, the company announced in a filing with the Securities and Exchange Commission. And while it's easier said than done, we have to keep our heads down and keep executing, because that—and nothing less—is what will keep Uber going and get us to the other side. CEO Dara Khosrowshahi will not be paid for the rest of the year. Days like this are brutal. By signing up you agree to our Terms of Use and Privacy Policy, Reporter covering breaking news in technology. 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 … Get this delivered to your inbox, and more info about our products and services. 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. The stock surged more than 15 percent after hours on better-than-expected results. Khosrowshahi made $1 million in base salary in 2019 but gained the vast majority of his compensation from bonuses and stock awards. This week, Uber announced that it will layoff 3,500 employees, representing 14% of its workforce. 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. Uber said it expects to spend about $20 million on severance and other benefits for the laid-off employees. Lyft spokesperson Alexandra LaManna said the company had nothing further to share from its layoff announcement last week. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. The layoffs come as Uber’s ride-hailing business fell 80% in April as people stay at home amid the COVID-19 pandemic. "We are looking at many scenarios and at each and every cost, both variable and fixed, across the company," Khosrowshahi said. In an SEC filing dating back to last week, Uber disclosed plans to layoff 3,700 employees. Continue Reading Below Ride-hailing company Uber … News of Uber’s additional layoffs comes just days after the company reportedly entered acquisition talks with food delivery giant GrubHub. Lyft Inc. , the main alternative to Uber in North America, said last week it was dismissing 17% of staff, furloughing more and reducing salaries. Uber's global gross bookings are down 80%, according to a report from The Information last month. CEO Dara Khosrowshahi announced the layoffs … Citing record unemployment, he said, “we expect driver supply to outstrip rider demand” for the foreseeable future. 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. 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. That proximity has become a liability at a time where people are cautioned or ordered to keep their distance from others. 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. -CNBC's Deirdre Bosa contributed to this report. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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). 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. "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.". California sued Uber and Lyft on Tuesday, alleging the drivers are misclassified as independent contractors under a new state law. It secured a $1 billion loan from investors last month. By classifying their drivers as contractors rather than employees, the companies are protected from some liability and offering full benefits. 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. The moves were announced in a filing with the Securities and Exchange Commission. 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. 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. 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. CEO Dara Khosrowshahi will also forgo his base salary for the rest of the year, which was $1 million in 2019. Faiz Siddiqui contributed to this report. 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. The newspaper says more than 1,000 workers have been laid off by Uber since May 2019, but workers at the company’s office in Santa Monica were not affected by the most recent round of layoffs. I am truly sorry that we are doing this, just as I know that we have to do this. The economic fallout from the coronavirus has come to Silicon Valley, with major tech firms announcing layoffs in recent weeks.. On Wednesday, Uber … 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. 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. SAN FRANCISCO — Uber announced thousands more layoffs on Monday, the latest round of cuts for a business devastated by the coronavirus pandemic. More to come. Uber to cut 3,700 jobs, adding to a growing number of tech layoffs The company also said CEO Dara Khosrowshahi would not take a salary for the rest of the year Uber … We want to hear from you. 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 … Uber is cutting hundreds of employees from its engineering and product teams in an effort to boost the bottom line. "This is not the news The Street wanted to hear, and it … Update: it happened on May 6. 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. “These are the hard truths we’re facing,” he added. Get all the latest news on coronavirus and more delivered daily to your inbox. In a sign of the times, with employees working from home, Uber informed the … Data is a real-time snapshot *Data is delayed at least 15 minutes. “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. This comes a week after Ola laid off about 1,400 employees in the country. Khosrowshahi hinted in a memo to employees Wednesday that more cost cuts are on the way. Got a confidential news tip? 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. New York (CNN Business)Uber (UBER) is laying off roughly one-third of its global marketing staff. 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 will announce its quarterly earnings on Thursday. 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. His salary was set for $1 million in 2019, with a possible $2 million bonus. Sign up here. 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. Over 30% people get it wrong! 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. “Days like this are brutal,” Khosrowshahi wrote in an email sent to all employees Wednesday. Morning Markets: Uber’s hundreds of layoffs ahead of earnings are a reminder that the balance between growth and profitability requires one to improve if the other deteriorates. 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. The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. 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. The cuts to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. All Rights Reserved. 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. 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. The Information had reported a week ago that Uber is in discussions to lay off 20% of its employees. 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’s first day of trading ended deep in the red over gig-economy fears. Investors will get a greater sense of the impact on Thursday when Uber reports earnings. 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 … The U.K. newspaper the Daily Mail first reported the news … Airbnb spokesman Nick Papas declined to comment on any updated IPO plans. 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. But the designation has been controversial, as critics say it means less protection when work dwindles. One exception is Uber Eats, the company’s restaurant delivery arm, where executives said demand has surged. Uber's stock fell as much as 4% Wednesday but ended the trading day down 0.9%. Uber used the popular teleconference software to conduct multiple meetings last week to inform employees about the layoffs. They plan to have the layoffs within the next two weeks, added the people cited above. Uber rival Lyft … Uber's drivers have suffered from lost income, reigniting the debate around whether Uber should be able to classify them as contractors. And with our hiring freeze, there simply isn't enough work for recruiters. “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. A $6 billion … © 2021 CNBC LLC. Lyft plunges below IPO price, sending cautionary message to other unicorns. Uber already owns a minority stake in Lime and has its own line of electric scooters and bikes called Jump. Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks during an interview in Tokyo, Japan, on Wednesday, July 3, 2019. California sues Uber, Lyft over alleged labor law violations. Keep an eye out for an invite soon. 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. The newly-public company confirmed Monday … At the same time, other businesses relying on gig workers have surged. WATCH: Delivery workers are risking their lives to bring people groceries during coronavirus — here's what it's like for them. Ahead of the layoffs, Uber … 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 … Even as the company has considered cuts, it reportedly also has been looking at investments for the future. The most important news stories of the day, curated by Post editors and delivered every morning. 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. The figure amounts to around 14% percent of the … 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. We wouldn't be here without their efforts and I want to personally thank them for everything they've done for Uber. 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. #layoff #uber Update: it is not happening by May 1. 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. Tech companies have eliminated more than 38,000 jobs in the past two months, according to Layoffs.fyi, which tracks the job market. Amid its regulatory struggles and large overseas investments, Uber’s recent efforts to cut costs have apparently involved multiple rounds of layoffs, with … 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. 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’s stock price fell more than 4 percent to $26.90 per share after the layoffs were announced Wednesday. A Division of NBCUniversal. The layoffs to its … (Amazon founder Jeff Bezos owns The Washington Post. With the reality of our Rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially. Other unicorns the laid-off employees people groceries during coronavirus — uber news layoffs 's what it like. Delivered every morning better-than-expected results Securities and Exchange Commission at uber news layoffs same,. His compensation from bonuses and stock awards in the country 's what it 's like for them price, cautionary... 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