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 amid the pandemic is expected to happen on Monday, a source told Business Insider.
The number of staffers being let go was not confirmed, but a source said it would be thousands. It’s also unclear if all the reported layoffs will happen on Monday.
A company spokesperson said the company is surveying every option on how to best operate amid the coronavirus pandemic.
“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,” she said.
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During an all-hands meeting two weeks ago, CEO Dara Khosrowshahi revealed that he was finalizing layoff plans and employees would be notified within weeks.
One day later, 3,700 staffers were axed during a Zoom call led by the head of customer service, Ruffin Chaveleu.
Globally, Uber employed 28,600 staffers – with 16,200 outside the US – as of March 31, according to its SEC quarterly filing on May 8.
That latest firing accounted for 14 per cent of its workforce.
If Uber is not discussing more layoffs at the moment, then the two week-period that Khosrowshahi cautioned about would be over.
But sources close to Uber told Business Insider that this is not likely, especially if the acquisition of Grub Hub goes through.
Earlier this month, Uber made an offer to buy the delivery service company.
The move would consolidate the two companies and allow Uber to lean into the food delivery service to make up for financial loses amid the pandemic.
If this happens, Uber will be in a position to cut employees whose Uber Eats role overlaps with Grub Hub.
Uber executives who attended the all-hands meeting reportedly discussed a severance package for sacked staffers, including 10 weeks of pay and health cure promised through 2020.
Divisions expected to see cuts reportedly include the freight unit and the self-driving car unit, Advanced Technologies Group, the source said.
Lior Ron, head of the Freight unit, warned employees of possible layoffs, Business Insider reports.
