According to a report by Business Insider, Uber Technologies Inc. is reportedly preparing to cut thousands more jobs in another wave of layoffs just weeks after 3,700 employees were told their services were no longer required.
In a three minute Zoom meeting call, the 3,700 employees were each individually told they were being laid off by the Silicon Valley giant as the coronavirus pandemic continues to swallow up businesses.
It has not been confirmed how many more people could see their employment contract terminated, if any, although the figure is reportedly expected to be in the thousands again.
Uber’s problems have continued to grow during lockdown with major criticism from a representative of some of the firm's major shareholders.
CtW Investment Group highlighted Uber CEO Dara Khosrowshahi’s huge pay-packet amidst such job cuts and criticised the company’s poor record on the stock market.
In an open statement to shareholders, published by CtW Investment Group, attention was paid to Khosrowshahi’s “golden hello” sign-on package when he joined Uber in 2017.
As part of his package, he would receive an equity award worth $100 million if Uber’s market worth reaches $120 billion and manages to stay there for longer than 90 days. The statement reads: ”Uber’s CEO Dara Khosrowshahi has received an overly generous compensation package to join the company, with a significant amount of equity that lacks performance conditions and has little retentive value.
“He was poached from Expedia in 2017, and while he forfeited a significant amount of options when he left that company, it does not fully excuse the exorbitant cost Uber paid to bring Khosrowshahi on board. In fact, it is unclear whether the Expedia options he forfeited would ultimately have had any value at all with exercise prices of $95 per share (the company’s stock price closed on April 14, 2020 at $61.48 and a portion of the options required a stock price achievement of $170 in order to vest).
“The sign-on package, which does not encourage long-term retention, has become increasingly untenable as the company’s workers struggle to make ends meet amid the COVID-19 outbreak.”
Dara Khosrowshahi reportedly earned $42.4 million in 2019.