Uber to lay off 600 employees

Cab aggregators are seeing an uncertain future despite the lockdown getting lifted in many cities. After Ola, Uber is laying off 600 employees.

These employees include drivers, those in rider support services as well as other functions. The lay-off is part of the parent company's decision to let go 3,700 jobs across key markets.

"The impact of Covid19 and the unpredictable nature of the recovery has left Uber India with no choice but to reduce the size of its workforce. Around 600 full time positions across driver and rider support, as well as other functions, are being impacted. These reductions are part of previously announced global job cuts this month," said Pradeep Parameswaran, president, Uber India and South Asia.

Each will receive a minimum 10 weeks payout, medical insurance coverage for the next six months, outplacement support, be allowed to retain their laptops and given the option to join the Uber talent directory, he added.

The Covid-19 outbreak and the subsequent lockdown have hit the business of Uber hard. Rides came to a complete halt in the past six weeks. Though the government has issued some guidelines with regard to carrying passengers postlockdown, cab aggregators find their revival prospects to be bleak. Customers' preference of personal vehicles postlockdown also will work against the revival.

Globally, Uber will be reducing 14 per cent of its staff. Last year also the parent firm had lain off more than 1,000 employees after a not-soencouraging IPO. The company was cutting costs to increase profitability.

In India, rival Ola too had announced staff reduction by 1,400 last week.