Uber’s stock price fell more than 4 percent to $26.90 per share after the layoffs were announced Wednesday. 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. Days like this are brutal. 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 spokesperson Alexandra LaManna said the company had nothing further to share from its layoff announcement last week. 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 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 … "We are looking at many scenarios and at each and every cost, both variable and fixed, across the company," Khosrowshahi said. Uber temporarily closed all U.S. locations in March due to the pandemic. Uber is cutting hundreds of employees from its engineering and product teams in an effort to boost the bottom line. 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. With the reality of our Rides trips volumes being down significantly, our need for CommOps as well as in-person support is down substantially. California sued Uber and Lyft on Tuesday, alleging the drivers are misclassified as independent contractors under a new state law. The moves were announced in a filing with the Securities and Exchange Commission. The layoffs to its … Uber is laying off 3,700 employees in its customer service and recruiting departments as the number of ride-sharing passengers have plunged during the … Sign up here. © 2021 CNBC LLC. Sign up for free newsletters and get more CNBC delivered to your inbox. (Amazon founder Jeff Bezos owns The Washington Post. ), Tech giants are profiting — and getting more powerful — even as the global economy tanks. “Days like this are brutal,” Khosrowshahi wrote in an email sent to all employees Wednesday. A $6 billion … Get this delivered to your inbox, and more info about our products and services. 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. “On 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,” the analysts said. At the same time, other businesses relying on gig workers have surged. We see the news that Uber plans to layoff 20% of employees. When will this happen (Uber Q1 earning report is next Thursday 05-07)? Uber will announce its quarterly earnings on Thursday. SAN FRANCISCO — Uber announced thousands more layoffs on Monday, the latest round of cuts for a business devastated by the coronavirus pandemic. 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. "This is not the news The Street wanted to hear, and it … But the designation has been controversial, as critics say it means less protection when work dwindles. Investors will get a greater sense of the impact on Thursday when Uber reports earnings. CEO Dara Khosrowshahi will also forgo his base salary for the rest of the year, which was $1 million in 2019. 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. 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. Uber's global gross bookings are down 80%, according to a report from The Information last month. By classifying their drivers as contractors rather than employees, the companies are protected from some liability and offering full benefits. I am truly sorry that we are doing this, just as I know that we have to do this. Khosrowshahi made $1 million in base salary in 2019 but gained the vast majority of his compensation from bonuses and stock awards. And Big Tech companies — notably Amazon, which has hired 175,000 warehouse workers and delivery drivers — are expected to emerge from the crisis potentially more powerful. 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. Ahead of the layoffs, Uber … And while it's easier said than done, we have to keep our heads down and keep executing, because that—and nothing less—is what will keep Uber going and get us to the other side. More to come. 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 … And with our hiring freeze, there simply isn't enough work for recruiters. Data is a real-time snapshot *Data is delayed at least 15 minutes. Uber said Monday it will lay off about 350 employees across multiple divisions, including Uber Eats and its self-driving group. Got a confidential news tip? 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. This is not in any way a reflection of these employees' efforts or contributions to getting us to where we are, as a service that everyone associates with movement and earnings opportunities. “I am truly sorry that we are doing this, just as I know that we have to do this.”, Lyft to lay off 17 percent of staff as coronavirus takes toll. You can read the emails that were sent to those teams here. 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. Even as the company has considered cuts, it reportedly also has been looking at investments for the future. It secured a $1 billion loan from investors last month. While the decline in rides has stabilized now, he said, trips are still down about 70 percent — even as some began to return to the app in cities that loosened restrictions. In an SEC filing dating back to last week, Uber disclosed plans to layoff 3,700 employees. (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. Tech companies have eliminated more than 38,000 jobs in the past two months, according to Layoffs.fyi, which tracks the job market. CEO Dara Khosrowshahi will not be paid for the rest of the year. 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. Khosrowshahi hinted in a memo to employees Wednesday that more cost cuts are on the way. Uber cut another 3,700 employees on May 6. Khosrowshahi said Uber would give employees "a further, final update" within two weeks. vote Uber Layoff Timeline Hello! Faiz Siddiqui contributed to this report. 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. This comes a week after Ola laid off about 1,400 employees in the country. Uber’s first day of trading ended deep in the red over gig-economy fears. Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks during an interview in Tokyo, Japan, on Wednesday, July 3, 2019. 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. 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. We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. WATCH: Delivery workers are risking their lives to bring people groceries during coronavirus — here's what it's like for them. 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. The cuts to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. 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. "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 and Lyft rely heavily on contracted drivers to power their businesses. The newly-public company confirmed Monday … We want to hear from you. 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). All Rights Reserved. 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 is laying off 600 employees in India as a part of the company’s recent announced global job cuts. SACRAMENTO — Uber laid off 435 workers in its product and engineering teams on Tuesday, the company’s second round of cuts in recent months as … Uber said it expects to spend about $20 million on severance and other benefits for the laid-off employees. Uber's drivers have suffered from lost income, reigniting the debate around whether Uber should be able to classify them as contractors. Uber used the popular teleconference software to conduct multiple meetings last week to inform employees about the layoffs. The figure amounts to around 14% percent of the … Get all the latest news on coronavirus and more delivered daily to your inbox. New York (CNN Business)Uber (UBER) is laying off roughly one-third of its global marketing staff. CEO Dara Khosrowshahi announced the layoffs … 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. That proximity has become a liability at a time where people are cautioned or ordered to keep their distance from others. Amid its regulatory struggles and large overseas investments, Uber’s recent efforts to cut costs have apparently involved multiple rounds of layoffs, with … 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. News of Uber’s additional layoffs comes just days after the company reportedly entered acquisition talks with food delivery giant GrubHub. This week, Uber announced that it will layoff 3,500 employees, representing 14% of its workforce. 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 Information had reported a week ago that Uber is in discussions to lay off 20% of its employees. 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. The stock surged more than 15 percent after hours on better-than-expected results. Keep an eye out for an invite soon. Uber's stock fell as much as 4% Wednesday but ended the trading day down 0.9%. Over 30% people get it wrong! The layoffs to its customer support and recruiting teams represent about 14% of its 26,900 employees, based on Uber's most recent headcount. That's today's news. One exception is Uber Eats, the company’s restaurant delivery arm, where executives said demand has surged. Uber spokesperson Lois van der Laan said in a statement the “unfortunate reality” is there isn’t enough work for many customer support employees because people are riding less. By signing up you agree to our Terms of Use and Privacy Policy, Reporter covering breaking news in technology. “These are the hard truths we’re facing,” he added. Update: it happened on May 6. Citing record unemployment, he said, “we expect driver supply to outstrip rider demand” for the foreseeable future. They plan to have the layoffs within the next two weeks, added the people cited above. Khosrowshahi advocated to President Donald Trump for a "third way" of classifying workers beyond contractors and employees, while pushing for gig workers to be eligible for stimulus relief. What it's like to be a delivery worker during the coronavirus pandemic, filing with the Securities and Exchange Commission, advocated to President Donald Trump for a "third way" of classifying workers, alleging they denied workers benefits by misclassifying them. The economic fallout from the coronavirus has come to Silicon Valley, with major tech firms announcing layoffs in recent weeks.. On Wednesday, Uber … Uber's Rides business made up the bulk of its adjusted net revenue in the fourth quarter of 2019, or 81%; its food delivery service, Eats, made up … Continue Reading Below Ride-hailing company Uber … California sues Uber, Lyft over alleged labor law violations. The three companies all rely on people sharing a close space with others — drivers and passengers in Uber and Lyft rides, and vacationers in Airbnb homes where owners often live or have recently left. 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. Uber will lay off 3,700 employees, the company announced in a filing with the Securities and Exchange Commission. Uber rival Lyft … Airbnb has started cutting 25 percent of its workforce, or about 1,900 people, CEO Brian Chesky said in an email to employees Tuesday. The most important news stories of the day, curated by Post editors and delivered every morning. 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 … Uber has fired 600 people in India across levels and teams on Tuesday, a week after homegrown rival Ola slashed its workforce by a third. 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. On-demand shopping app Instacart said it would try to hire 300,000 shoppers this spring. 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. Lyft plunges below IPO price, sending cautionary message to other unicorns. The U.K. newspaper the Daily Mail first reported the news … #layoff #uber Update: it is not happening by May 1. Airbnb spokesman Nick Papas declined to comment on any updated IPO plans. In a sign of the times, with employees working from home, Uber informed the … Sources inside Uber, cited by Business Insider, said surviving employees are bracing for the latest round of mass layoffs, which will definitely run into thousands. The company said its revenue grew 23 percent compared to the same quarter last year, to $956 million. As I said yesterday, you can expect we will have a further, final update for you within the next two weeks. Uber confirmed the development. 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. -CNBC's Deirdre Bosa contributed to this report. Meanwhile, more than 42,000 people have been laid off from small tech companies since March 11, according to Silicon Valley layoff tracker Layoffs.fyi. Airbnb said last year that it planned to go public during 2020, though it’s unclear what type of reception the company would face if it moves forward with the plan. His salary was set for $1 million in 2019, with a possible $2 million bonus. The layoffs come as Uber’s ride-hailing business fell 80% in April as people stay at home amid the COVID-19 pandemic. A Division of NBCUniversal. 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 … We wouldn't be here without their efforts and I want to personally thank them for everything they've done for Uber. Uber’s announcement follows similar cuts by tech companies Lyft and Airbnb, fellows in the on-demand economy that has taken a plunge as people stay at home and try to avoid contact with others. 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