Uber, the chauffeured car transfer platform, fired around 3,500 employees through a video call made by the Zoom app. It lasted a little more than three minutes.
The person in charge of announcing the mass layoffs was Ruffin Chaveleau, who heads Uber customer service. He broke the news to 14% of his staff as a measure to survive the financial impact of his business, strongly affected by the coronavirus pandemic.
“Our ridesharing business has been cut by more than half. There is not enough work for many employees on the front line of customer service. As a result of that, we eliminated 3,500 customer service positions ”, were the words of Chaveleau during the video call with his staff in charge.
And then he continued: “Their positions have been affected and today will be his last day of work with Uber. They will remain on the payroll until the date indicated in the compensation document. ”
“I know this is incredibly difficult to hear. No one wants to be on a call like this. With everyone working remotely and with a change of this magnitude, we had to do this so that it was reported as quickly as possible so that they would not hear it through rumors ”Caveleau argued, the DailyMail reported.
For his part, Dara Khosrowshahi, the executive director of the company, based in San Francisco, justified the decision explaining: “We are making these difficult decisions now so we can move forward and start building again with confidence.” Uber announced on May 11 that it would reduce its global workforce and cut investment due to the COVID-19 crisis.
“Given the dramatic impact of the pandemic and the unpredictable nature of any eventual recovery, we are concentrating our efforts on our central mobility and delivery platforms and resizing our company to match the realities of our business, “concluded Khosrowshahi.
The company planned to compensate the laid off workers with at least 10 weeks of pay and continue to provide them with health benefits until the end of this year.
Car trips with Uber drivers fell, but the food delivery sector is growing. The company reported 53% revenue growth for Uber Eats in the first three months of this year, as more people have made requests to avoid the coronavirus, especially with generalized confinements.
Eats’ revenue increased to $ 819 million, about a third of Uber’s total turnover in the quarter.