American ride-hailing giant Uber has reportedly fired 10-15% of its employees in India across all of its businesses in the country including Uber Eats. This comes after Uber CEO Dara Khosrowshahi emailed employees on Monday saying the company would cut jobs of 350 people across the world. Uber reportedly has around 350-400 employees in India.
An ET report, citing people aware of the matter, said that Uber India has laid off 10-15% of its employees. These are expected to impact Uber’s businesses in the country, including its online food-delivery vertical under UberEats. On Monday, the company had emailed employees saying it would cull jobs of 350 people across the world and 70% of that will be in the United States and Canada.
The report further added that Uber’s Indian policy team has been shrinking consistently and most of the work is being outsourced to one of the big Indian law firms. Further, it has not yet been ascertained which department employees have been shown the door.
It is being said that even though India contributes only 2% of Uber’s revenues, the country has been a larger part of expenses, and hence, can be a target of cost-cutting. On a global level, Uber reported a loss of $5.2 Bn in the second quarter of 2019, as compared to $3.7 Bn in the Q1 of 2019. The company attributed this loss to $298 Mn spent on driver appreciation award offered in connection with the company’s initial public offering, along with its $3.9 Bn spendings towards stock-based compensation expenses.
The development coincides with Uber CEO Dara Khosrowshahi’s scheduled visit to India later this month. However, the report added that his visit may not be directly connected with the layoffs.
Uber has been downsizing through the year. The first job cuts happened in July when staff from the marketing and analytics team were let go. The second round happened in September but did not affect India. However, product and technology positions were eliminated back then.
Recently, Uber reconstructed its corporate holdings and brought its India business, including food delivery, under Uber India Systems. The report added that the rides business will also be invoiced out of India going forward. It said that the restructured business operations went live on October 1.