Uber is cutting 3,700 jobs, 14% of its total workforce, as the coronavirus ravages ride-hailing revenues (UBER)

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• Uber is cutting thousands of jobs to save money amid the coronavirus. 
• The company announced 3,700 layoffs, roughly 14% of its total workforce, on Wednesday. 
• Uber is set to report first-quarter financials on Thursday. 
• Visit Business Insider’s homepage for more stories.

Uber said Wednesday that it would cut 3,700 jobs, representing 14% of its global workforce, as the coronavirus ravages ride-hailing revenues.

“Due to lower trip volumes in its Rides segment and the Company’s current hiring freeze, the Company is reducing its customer support and recruiting teams,” the company said in a regulatory filing.

News of the layoffs comes a day after CEO Dara Khosrowshahi warned employees at an all-hands meeting that plans for layoffs would be finalized within two weeks, according to a source familiar with the meeting. Khosrowshahi has agreed to forego his $1 million base salary until the end of the year, Uber said in the filing. 

The layoffs will cost Uber “approximately $20 million” in severance and other benefits payouts, it said. 

Uber employed 26,900 global employees as of December 31, with 10,700 in the US and 16,200 in other countries, according to its annual report. 

Shares of Uber fell as much as 2.5% in early trading Wednesday, and remain down about 32% from February highs. 

As the coronavirus pandemic precipitated shelter-in-place orders around most of the world, ride-hailing revenues for both Uber and Lyft have plummeted. Uber has leaned heavily on its Uber Eats delivery segment to make up some of the difference, but it’s not clear how much the quickly-growing business can add. 

“Our Eats Business has become an important resource right now, especially by restaurants hit by containment policies,” Khosrowshahi told analysts in April. 

Lyft, which only operates in the US and recently began delivering some “essential” items, said on April 29 that it would lay off 1,000 employees, or about 17% of its workforce. 

Investors will get their first complete look at the full impact on Thursday when Uber reports its first-quarter financial performance. The company previously withdrew its 2020 guidance, including its prediction of a profit, in April. In that same disclosure, Uber warned some of its minority investments could be reduced by up to $2.2 billion in the first quarter. 

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