Uber's stock fell as much as 4% Wednesday but ended the trading day down 0.9%. California sues Uber, Lyft over alleged labor law violations. "We are looking at many scenarios and at each and every cost, both variable and fixed, across the company," Khosrowshahi said. 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. Uber said it expects to spend about $20 million on severance and other benefits for the laid-off employees. Uber confirmed the development. 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. 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 … More to come. We have worked hard to put together generous severance packages with a longer period of healthcare coverage to help provide a bridge, and we are also supporting EXTs whose roles are affected by today's decision. The proposed deal would transfer Jump to Lime and give Uber the option to buy Lime at a specified price between 2022 and 2024, according to the report. The cuts to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. A $6 billion … We wouldn't be here without their efforts and I want to personally thank them for everything they've done for Uber. All Rights Reserved. Uber's drivers have suffered from lost income, reigniting the debate around whether Uber should be able to classify them as contractors. 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. Khosrowshahi hinted in a memo to employees Wednesday that more cost cuts are on the way. New York (CNN Business)Uber (UBER) is laying off roughly one-third of its global marketing staff. 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. 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. Uber will announce its quarterly earnings on Thursday. It secured a $1 billion loan from investors last month. 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. Ahead of the layoffs, Uber … The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. âOn 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,â the analysts said. The stock surged more than 15 percent after hours on better-than-expected results. News of Uber’s additional layoffs comes just days after the company reportedly entered acquisition talks with food delivery giant GrubHub. Amid its regulatory struggles and large overseas investments, Uber’s recent efforts to cut costs have apparently involved multiple rounds of layoffs, with … Got a confidential news tip? We want to hear from you. -CNBC's Deirdre Bosa contributed to this report. The Information had reported a week ago that Uber is in discussions to lay off 20% of its employees. 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. © 2021 CNBC LLC. 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. SAN FRANCISCO — Uber announced thousands more layoffs on Monday, the latest round of cuts for a business devastated by the coronavirus pandemic. 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 … Uber used the popular teleconference software to conduct multiple meetings last week to inform employees about the layoffs. Sign up for free newsletters and get more CNBC delivered to your inbox. Investors will get a greater sense of the impact on Thursday when Uber reports earnings. Keep an eye out for an invite soon. Lyft spokesperson Alexandra LaManna said the company had nothing further to share from its layoff announcement last week. When will this happen (Uber Q1 earning report is next Thursday 05-07)? Data is a real-time snapshot *Data is delayed at least 15 minutes. The company said its revenue grew 23 percent compared to the same quarter last year, to $956 million. 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. 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. But the designation has been controversial, as critics say it means less protection when work dwindles. Layoffs of that magnitude could be announced in stages in the coming weeks at Uber, said the report, as long-serving Uber's Chief Technology Officer (CTO) Thuan Pham quit the company. Uber cut another 3,700 employees on May 6. 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. 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. 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. 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 is cutting hundreds of employees from its engineering and product teams in an effort to boost the bottom line. Uber rival Lyft … Even as the company has considered cuts, it reportedly also has been looking at investments for the future. The U.K. newspaper the Daily Mail first reported the news … 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. Airbnb spokesman Nick Papas declined to comment on any updated IPO plans. The layoffs to its … By classifying their drivers as contractors rather than employees, the companies are protected from some liability and offering full benefits. On-demand shopping app Instacart said it would try to hire 300,000 shoppers this spring. 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. Uber is laying off 600 employees in India as a part of the company’s recent announced global job cuts. 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. Uber's global gross bookings are down 80%, according to a report from The Information last month. WATCH: Delivery workers are risking their lives to bring people groceries during coronavirus — here's what it's like for them. Uber and Lyft rely heavily on contracted drivers to power their businesses. vote Uber Layoff Timeline Hello! Uber will lay off 3,700 employees, the company announced in a filing with the Securities and Exchange Commission. Uber India said the layoffs are part of the previously announced global job cuts Ride-hailing company Uber India said on Tuesday that it is laying off around 600 full-time employees due to … 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 spokesperson Lois van der Laan said in a statement the âunfortunate realityâ is there isnât enough work for many customer support employees because people are riding less. (CNN Business) Uber informed staff on Monday that it is cutting another 3,000 employees as it continues to grapple with the pressure from the global pandemic on its core business. We see the news that Uber plans to layoff 20% of employees. CEO Dara Khosrowshahi announced the layoffs … Khosrowshahi said Uber would give employees "a further, final update" within two weeks. Continue Reading Below Ride-hailing company Uber … 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 … 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 … 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. 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 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. His salary was set for $1 million in 2019, with a possible $2 million bonus. 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. 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. A Division of NBCUniversal. "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.". The economic fallout from the coronavirus has come to Silicon Valley, with major tech firms announcing layoffs in recent weeks.. On Wednesday, Uber … Uber temporarily closed all U.S. locations in March due to the pandemic. Citing record unemployment, he said, âwe expect driver supply to outstrip rider demandâ for the foreseeable future. While the decline in rides has stabilized now, he said, trips are still down about 70 percent â even as some began to return to the app in cities that loosened restrictions. They plan to have the layoffs within the next two weeks, added the people cited above. And with our hiring freeze, there simply isn't enough work for recruiters. Khosrowshahi made $1 million in base salary in 2019 but gained the vast majority of his compensation from bonuses and stock awards. Get all the latest news on coronavirus and more delivered daily to your inbox. I am truly sorry that we are doing this, just as I know that we have to do this. CEO Dara Khosrowshahi will not be paid for the rest of the year. Days like this are brutal. You can read the emails that were sent to those teams here. The layoffs come as Uber’s ride-hailing business fell 80% in April as people stay at home amid the COVID-19 pandemic. Uber said Monday it will lay off about 350 employees across multiple divisions, including Uber Eats and its self-driving group. The most important news stories of the day, curated by Post editors and delivered every morning. 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. In a sign of the times, with employees working from home, Uber informed the … Uber already owns a minority stake in Lime and has its own line of electric scooters and bikes called Jump. This comes a week after Ola laid off about 1,400 employees in the country. 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