Uber will slash 3,700 recruiting and buyer assist employees within the largest spherical of layoffs so far for a San Francisco firm in the course of the coronavirus epidemic.
The San Francisco ride-hailing firm is reducing 14% of its complete employees and expects to incur $20 million in costs, in accordance with a Securities and Change Fee submitting. CEO Dara Khosrowshahi will forgo his wage for 2020.
It was not instantly clear the place the job losses would hit, although Uber is one among San Francisco’s largest personal employers.
Uber’s smaller rival Lyft had 982 layoffs last week, with each corporations citing a drop in ridership attributable to coronavirus in federal filings.
The businesses are additionally going through a lawsuit from California officials associated to AB5, alleging that they misclassified their drivers as unbiased contractors as a substitute of staff.
Over the previous decade, Uber turned a juggernaut of San Francisco’s new tech epicenter, and it turned one of many largest personal workplace tenants within the Bay Space. It’s at present finishing an enormous new headquarters complex next to Chase Center and in addition has main workplace expansions in Dallas, Chicago and New York.
However a wave of scandals in 2017, together with studies of sexual harrassment of staff and clashes with regulators, led to the departure of co-founder Travis Kalanick as CEO. The corporate went public final yr with disappointing outcomes, seeing its valuation drop from a $82 billion goal on its debut to $47 billion on Wednesday.
— to www.sfchronicle.com