Uber will layoff 3,700 recruiting and customer support staff in the largest round of layoffs to date for a San Francisco company, in response to the reduced volume of ride requests, as the ongoing pandemic continues to impact its business.
The news comes only 2 days after Uber subsidiary Careem announced laying off 31% of its workforce.
The ride-hailing giant disclosed cutting 14% of its total 26,900 workforce according to a Securities and Exchange Commission filing. Uber also said in the filing that CEO Dara Khosrowshahi will forgo his salary for 2020.
“Days like this are brutal. I am truly sorry that we are doing this, just as I know that we have to do this,” Khosrowshahi wrote in an email about the layoffs to staffers, which was viewed by CNN Business.
Khosrowshahi also hinted that there may be more changes to come.
“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),” he wrote. “We are looking at many scenarios and at each and every cost, both variable and fixed, across the company.”
Shares of Uber were down nearly 4% in early trading Wednesday.
The layoff announcement comes a day after Airbnb, another San Francisco-based company, announced it was cutting 25% of its workforce.