Ride hailing app Uber has retrenched hundreds of its employees in India, after recently announcing pay cuts and layoffs for its employees, as coronavirus eats up revenues. The company has announced that 600 employees in its India unit will no longer work for it as the company looks to cut costs amid pandemic. The number amounts to 25% of Uber’s total workforce in the country, Uber said in a statement on Tuesday. “Around 600 full time positions across driver and rider support, as well as other functions, are being impacted. These reductions are part of previously announced global job cuts this month,” Pradeep Parameswaran, President for Uber’s India and South Asia businesses, said. Uber’s announcements follow an earlier announcement made by its local rival Ola, which had laid off 1,400 employees or about one in every third employee.
The job cuts have been implemented across various teams such as customer and driver support, business development, legal, policy, marketing, and finance. In this month, Uber has retrenched around 6,700 employees under the company’s global restructuring plan. The American multinational ride hailing service said that it has given 10 to 12 weeks of salary to the laid off employees. Uber has also provided them medical insurance for the next six months.
“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. Today is an incredibly sad day for colleagues leaving the Uber family and all of us,” the statement said.
The travel and tourism and hospitality industry has been facing the heat of coronavirus lockdown and revenues are drying up for these companies. The country has announced a lockdown on 24 March as the government looked to curb the coronavirus pandemic. The government has recently eased some restrictions for ride hailing apps to resume operations in lockdown phase 4.