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Uber will lay off more than 100 Australian employees as part of its global job cuts

James Hennessy
  • Uber will lay off more than 100 Australian employees as part of its global job cuts, Business Insider Australia understands.
  • The rideshare company announced on Wednesday it would cut 3,700 jobs to save money through the coronavirus pandemic, constituting about 14% of its global workforce.
  • Uber had 26,900 global employees as of December 31, with 10,700 in the US and 16,200 in other countries, according to its most recent annual report.
  • Visit Business Insider Australia's homepage for more stories.

Uber will lay off a large number of Australian employees as part of its global job cuts, as the company seeks to save money as demand for ridesharing services plunges amid the coronavirus pandemic.

Business Insider Australia understands more than 100 Australian employees will laid off. It is unclear when these conversations will take place.

"With people taking fewer trips, the unfortunate reality is that there isn’t enough work for many of our front-line customer support employees," an Uber spokesperson said in statement emailed to Business Insider Australia. "Since we don’t know how long a recovery will take, we are taking steps to bring our costs in line with the size of our business today. This was a tough decision, but it is the right one to help protect the company’s long-term health and ensure we come out of this crisis stronger."

Uber announced on Wednesday it would cut 3,700 jobs, representing about 14% of its global workforce. “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 US regulatory filing.

In its filing, Uber said it expected to spend US$20 million on severance and benefits for the laid-off employees. CEO Dara Khosrowshahi will not take a salary for the rest of the year.

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

As stay-at-home orders sprung up around the world, Uber's core rideshare business has been heavily affected. In its stead, the company has leant on its Uber Eats food delivery business, though it is unclear to what extent that business is making up the losses.

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

The company is set to announce its first-quarter financial performance on Thursday, giving investors a glimpse at how the company has weathered the storm. The company withdrew its 2020 guidance in April due to the increasingly uncertain conditions.

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