Uber Reportedly Is Considering Cutting Up to 20% of Jobs

Uber reportedly is discussing cutting around 20% of the ride-hailing company’s employees.
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Executives at Uber Technologies  (UBER) - Get Report reportedly have been discussing cutting around 20% of the ride-hailing company’s employees, The Information reported, as the coronavirus pandemic has led to a steep decline in its business.

The layoffs could be announced in stages in the coming weeks. The cuts haven’t been finalized, according to The Information.

The layoffs could amount to 5,400 of Uber’s 27,000 employees losing their jobs, the report said.

An Uber spokesman declined to comment to Bloomberg on the possible job cuts. 

“As you would expect, the company is looking at every possible scenario to ensure we get to the other side of this crisis in a stronger position than ever,” the spokesman said.

Uber trimmed more than 1,100 jobs last year.

Separately, Uber Chief Technology Officer Thuan Pham, who has served as an executive at the company for seven years and is its longest-serving senior executive, has resigned.

Pham, the Information said, notified managers who report to him of his plan to leave. Uber's 3,800-person Uber engineering group could be slashed by nearly 800 people in the coming weeks under the proposed job cuts, the report said.

The Uber spokesman told Bloomberg that Uber’s engineering team will be performing Pham’s duties until the company finds a CTO replacement. A search currently underway, the spokesman added.

Earlier this month, Uber withdraw its 2020 financial guidance owing to coronavirus-related uncertainty.

The company told investors that it is "impossible to predict with precision the pandemic’s cumulative impact on our future financial results," and pulled its guidance on gross bookings, adjusted net revenue and adjusted EBITDA. 

The stock was up 1.26% to $30.50 in premarket trading Wednesday.

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