Uber lays off 25% of workforce in India due to Covid-19

Uber lays off 25% of workforce in India

The global pandemic adversely affected and halted economic activities. After all, this pandemic has rolled the economy upside down. The liquidity crisis severely impacted the demand and supply of the market forces. Due to lockdown amidst the COVID-19 outbreak, the cab service providing business reported heavy loss.




Uber India, on 26 May 2020 reported that it is laying off around 600 full-time workers, or about 25% of its workforce within the nation. Since the requests for app-based rides dropped significantly over the world due to the coronavirus widespread.

This was done last week after the rival Ola laid off around 1,400 employees as incomes dropped by 95 percent in the last two months due to the COVID-19 pandemic. Zomato moreover let go of 13 percent of its 4,000-employees, whereas Swiggy had let go of 1,100 staff.

Uber lays off employees due to Covid-19

What Does Uber President Says

“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber India with no choice but to reduce the size of its workforce. Amongst the major sufferers are around 600 full-time employees across driver and rider support, as well as other functions. These reductions are part of previously announced global job cuts this month,” Pradeep Parameswaran, President of Uber India and South Asia said.





“Today is an incredibly sad day for colleagues leaving the Uber family and all of us at the company. We made the decision now so that we can look to the future with confidence. I want to apologize to departing colleagues and extend my heartfelt thanks to them for their contributions to Uber, the riders, and the driver-partners we serve in India,” said Pradeep Parameswaran, Uber president for India and South Asia, confirming the development.

In his back-to-back declarations this month, the CEO of the troubled firm said the company would save over 6,700 representatives. This accounts for 25 percent of its 27,000-strong workforce, over the globe, in a bid to save $1 billion. India accounts for around 8 percent of its worldwide representative strength.

Also Read- List of Major Companies who laid off their employees due to Covid-19

Global Layoff by the Cab Service Company

With this, global lay off by Uber is over 6,700 representatives. Last week, Uber Technologies Inc – parent company of Uber India said it’ll concentrate on its center businesses in food and riding.

It has cut 23% of its workforce in an endeavor to become profitable in spite of the coronavirus widespread. Chief Official Officer Dara Khosrowshahi said the company plans to diminish investments in a few “non-core projects”.

So as to reconstruct the downgraded business, the company took this major step. Uber has declared that affected representatives will be given with 10-week payout and medical protections scope for the following six months.





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However, the employees can retain the laptop and apply via uber talent and career opportunities on the website.

In the past, Uber has talked of the significance of the Indian market. It boasts of its worldwide commerce as a key market and for tech and building ability. Within the past few weeks, a number of tech-led businesses like Zomato, Swiggy, and ShareChat have reported layoffs. These layoffs are the result of COVID-19 widespread. Also, lockdown dried up demand and desolated businesses.

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