Uber Technologies Inc. has announced plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from COVID-19 pandemic and its impact on the company's business.
The firm has said due to lower trip volumes in its 'Rides' segment and the company's current hiring freeze, the decision has been made to reduce its customer support and recruiting teams by approximately 3,700 full-time employee roles.
The decision to axe jobs is likely to cost the firm approximately $20 million in severance and other termination benefits, a filing has revealed.
Uber CEO Dara khosrowshahi has said: "Days like this are brutal. We are looking at many scenarios and at each and every cost, both variable and fixed, across the company.
"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."
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