Uber to sack 3,700 workers as CEO Khosrowshahi forfeits base salary

Uber Technologies Inc has agreed to sack 3,700 full-time workers as their Chief Executive Officer Dara Khosrowshahi forfeits his base salary due to the havoc caused by the COVID-19 pandemic.

According to the transport company, the layoffs will affect 17% of its employee count, included its customer support and recruiting teams, and expects to incur about $20 million in costs for severance and related charges.

Uber have been hugely affected as the coronavirus-led lockdowns have forced them to cut costs and withdraw their full-year financial outlooks as demand for app-based rides have dropped sharply across the world

“On the ride-sharing front, Uber and Lyft face Herculean-like challenges ahead as the new reality will likely change the business models of these companies (and competitors) for the foreseeable future,” Wedbush Securities analyst Daniel Ives said.

Ives also said the pandemic may change consumer behavior. The CEO Dara Khosrowshahi also agreed to forfeit his base salary for a year as the company seeks for a way through the red figures in their cash books.

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