- Uber is not done with its layoffs and employees are bracing for another round on Monday, someone familiar with the matter tells Business Insider.
- This person says that thousands more will be cut from Uber’s payroll.
- Uber also told employees last week about their severance package: 10 weeks plus paid healthcare until the end of the year, the person tells Business Insider.
- Uber most recently cut 3,700 jobs, 14% of its total workforce, earlier in May.
- Visit Business Insider’s homepage for more stories.
Uber is expected to begin another round of layoffs on Monday, a source with knowledge of the situation tells Business Insider.
Business Insider could not confirm the number of people that will be let go, although this person said that Uber plans to cut thousands from its workforce. We cannot confirm that those cuts will all happen on Monday however, as Business Insider previously reported, at the global all-hands meeting about two weeks ago, CEO Dara Khosrowshahi told employees that it was finalizing layoff plans and staff would know about them within two weeks. The next day, it cut 3,700 employees.
Uber employed 28,600 global employees — 16,200 outside the United States — as of March 31, it said in an its last quarterly report filed to the SEC on May 8. The 3,700 jobs cut earlier this month accounted for about 14% of its total workforce, the company said.
When asked about the next round of layoff a company spokesperson said, “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.”
If Khosrowshahi and team are not considering more layoffs at this time, then that two week-time frame that he warned about would be complete. However, sources at Uber that Business Insider has talked to are not convinced the layoffs are over, particularly if the reported acquisition of Grubhub occurs. In that case, Uber will almost certainly cut jobs as it consolidates overlapping roles within Uber Eats and Grubhub.
At the last all-hands meeting, Uber discussed the severance package being offered to the current crop of laid off employees: 10 weeks of pay and healthcare paid until the end of 2020, the source familiar said.
Units expected to be cutting employees include freight and the self-driving car unit, Advanced Technologies Group, this person believes. Business Insider learned that the leader of the Freight unit, Lior Ron, did warn employees that there would be layoffs. The CEO of the self-driving car unit, Eric Meyhofer, also did not answer any questions about layoffs at the all-hands meeting last week.
But, the atmosphere at the all-hands was not all gloom and doom. Employees submit questions for the all-hands meetings in advance and vote on them. And one question that received many votes was asking senior leadership to name their “guilty pleasure” songs. So, at the all-hands meeting, Meyhofer enjoyed a discussion on that. While some people found a discussion about songs while some people are worried about their jobs to be “tone deaf” as one person told us, others enjoyed it.
Uber laid off 3,700 people about two weeks ago, on top of the cuts made when it shuttered certain international Uber Eats organizations, transferring others to its Middle East subsidiary Careem and laying off a third of Careem’s employees. It also had multiple rounds of layoffs in 2019, cutting about 1,100 people. Should this next round of layoffs be as large as the one earlier this month, at around 4,000, Uber will have cut about 10,000 jobs from its payroll over the past year.
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