Uber lays off 600 employees in India as Covid-19 hits ride-hailing business

“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…600 people across driver and rider support, as well as other functions, are being impacted,” said Pradeep Parameswaran, President, Uber India and South Asia.

According to an email sent by Dara Khosrowshahi to employees, which was reviewed by ET, the layoffs are part of the company’s already announced global job cuts which were being done in phases across geographies.

All affected employees will receive a minimum of 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.

“Today is an incredibly sad day for colleagues leaving the Uber family and all of us at the company. …. I want to apologize to departing colleagues, and extend my heartfelt thanks to them for their contributions to Uber and the riders and driver-partners we serve in India,” Parameswaran said.

Earlier this month, Uber chief executive Khosrowshahi told analysts in an earnings conference call that reaching profitability as soon as possible remains a strategic priority for the ride-hailing firm.

“We believe that disruption caused by Covid-19 will impact our timeline, by a matter of quarters and not years,” he said, after Uber posted a 14% rise in revenue to $3.54 billion for the first quarter, on a loss of $2.9 billion during the period. This loss included a $2.1 billion pre-tax write-down of the value of some of Uber’s minority investments.