Uber India sacks one-fourth of staff

BENGALURU: Uber India on Tuesday said it has sacked around 600 employees—a fourth of its Indian workforce—as part of worldwide layoffs in May on account of “the impact of covid-19”.

The move, which the company said was aimed at trimming costs and breaking even by 2021, comes a week after rival Ola reduced its headcount.

The layoffs covered employees across segments, including customer and driver support, business development, legal, finance, policy and marketing verticals, Uber India said in a statement.

“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. Around 600 fulltime positions across driver and rider support, as well as other functions, are being impacted. These reductions are part of previously announced global job cuts… 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,” Pradeep Parameswaran, president, Uber India and South Asia, said in a press statement.

In early May, Uber announced a downsizing process, affecting around 6,700 employees worldwide.

Chief executive officer (CEO) Dara Khosrowshahi said recently that the company has already planned expenditure cutbacks worth $1 billion due to business disruptions.