Uber Lays Off 600 Employees in India a Week After Ola Downsized Its Workforce

Uber is laying off 600 employees in India as a part of the company's recently announced global job cuts. This comes a week after Ola laid off about 1,400 employees in the country. Uber claims that the unpredictable nature of recovery of business has left it no choice but to ‘reduce the size of its workforce'. The company has offered extended medical insurance for the next six months for all impacted employees and has given them an option to join the Uber talent directory.

“The impact of Covid-19 and the unpredictable nature of the recovery has left Uber India SA with no choice but to reduce the size of its workforce,” said Pradeep Parameswaran, president of Uber India and South Asia, in an emailed statement. “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.”

Uber had announced last week that it is slashing 3,000 jobs worldwide, its second major wave of layoffs in two weeks as the coronavirus slashed demand for rides. The San Francisco-based company has cut a quarter of its workforce since the year began, eliminating 3,700 people from the payroll earlier this month. The company will be closing or consolidating 45 offices globally, as its rides business fell 80 percent in April compared to the same month last year. Uber lost $2.9 billion (roughly Rs. 21,948 crores) in the first quarter as the coronavirus pandemic destroyed its overseas investments.

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As part of the severance package for all impacted employees of Uber, the company is promising 10 weeks of payout, medical insurance for the next six months, and outplacement support. These employees are also allowed to retain their laptops and are given the option to join the Uber talent directory.

Ola had promised minimum financial payout of three months of their fixed salary and extended medical insurance to the 1,400 affected employees in India.

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Ride-hailing and taxi services have been impacted greatly during the lockdown in the country. Their services were halted on March 25 when the first phase of lockdown came into effect, and were only resumed in a staggered manner earlier this month.

Apart from Ola and Uber, food aggregators like Zomato and Swiggy have also laid off hundreds of employees.

Editor's note: An earlier version of this article incorrectly stated Uber was offering 10 months of payout. The error is regretted.

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