What is Uber Layoffs? – The Motives, These Layoffs, and More
The effect of the coronavirus has fully impacted the technological world. As lives its golden days, others are affected by lockdown Uber Layoffs.
After Airbnb, the layoffs at Uber result in the departure of 14% of its workforce – data that does not count the losses in the area of drivers.
If yesterday Airbnb announced that it was obliged to lay off 25% of its workforce worldwide, now is Uber’s turn. Another of the great international technological giants. In this case, the layoffs at Uber would affect 14% of its workers.
The consequences of the coronavirus pandemic are having a direct effect on the health of some of the most popular platforms.
The drop in tourism, and the poor figures expected this year for the travel sector, have been decisive for Airbnb.
In the case of Uber, it is not just a matter of tourism, the reality is that trips in cities have been reduced considerably due to confinement in homes and the increase in teleworking. Almost 70% according to the figures provided by the company .
Only the home delivery area, also reduced by the drop in orders, has managed to withstand the impact of COVID-19.
In addition to those already recorded by Uber in the past – do not take into account its largest workforce drivers:
- Specifically, and according to the documents presented by the company before the Securities and Exchange Commission of the United States , the layoffs at Uber amount to 3,700 workers. Which mainly affect their areas of customer service and recruitment.
- Two of the areas that have had the least workload to manage during these days of the pandemic.
- Likewise, this 14% closes below the first rumors that The Information had on the table. Executives were targeting the layoff of nearly 20% of employees.
- And they are not alone: Lyft, a competitor of Uber, has also announced the layoff of 1,000 workers due to the pandemic – which represents 17% of its employees.
- Similarly, these layoffs – in addition to those already recorded by Uber in the past – do not take into account its largest workforce: drivers.
- The same as Airbnb and the apartment owners. They do not count as layoffs because, both in the United States and in other countries, they function autonomously under the platform economy.
- But the fall in activity, as a consequence of the coronavirus, has a direct impact on its activity. In Spain, in fact, most of the companies that own VTC licenses have presented ERTEs for 100% of their workforce.
Layoffs at Uber:
The constant in recent months, the announcement of the layoffs at Uber comes just hours before the company’s first-quarter results:
- The company has already announced that the results would not be entirely positive both for these accounts and for the overall year. In fact, they still do not make forecasts for 2020 and already assume that they will not be profitable before the end of the year.
- In fact, the layoffs at Uber that had been repeating since the end of 2019 in the areas of marketing and non-strategic divisions were precisely seeking to clean up accounts . Almost 1,000 in total.
- Also with the closure of non-strategic countries for the Uber Eats area. The food delivery division will close in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine before June
- For their car operations in the UAE they announced that they were transferring their operations to Careem.
- But investors are already clear on this and have shown it in the impact on the stock market. Uber shares have fallen more than 50% in recent weeks amid concerns about falling activity and the impact on accounts.
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