KEY POINTS

  • Uber will begin its second mass layoffs for the month, starting May 18
  • Thousands of employees will lose their jobs worldwide
  • Sources in Uber say more layoffs may take place in the future

Uber's firing of thousands more of its employees this week, starting Monday, will bring the number of people it has dismissed from responsibility over the past year to more than 10,000, according to some estimates.

Uber's previous round of job cuts saw it remove 3,700 people, or 14% of its total global workforce, in the first week of this month.

Sources inside Uber, cited by Business Insider, said surviving employees are bracing for the latest round of mass layoffs, which will definitely run into thousands. Ahead of the layoffs, Uber last week told employees to be fired that they'd received 10 weeks' salary plus paid healthcare until the end of 2020. Employees to be fired this week will come from freight and the self-driving car unit and Advanced Technologies Group.

Uber hasn't let-up on its layoff spree since 2019. It reported multiple rounds of layoffs last year in which it got rid of 1,100 employees. Some analysts expect Uber to fire almost the same number of employees -- about 4,000 -- it did in early May. This will mean Uber would have laid off about 10,000 people since 2019.

Uber has a global workforce of 28,600 people as of March 31, of which 16,200 are outside the United States. Uber said the 3,700 jobs cut starting May 6 was equivalent to 14% of its total workforce. Previous to this, Uber fired employees at its international Uber Eats organizations. It also moved some of these people to its Middle East subsidiary, Careem. Uber, however, also fired a third of Careem's employees.

"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," said an Uber spokesperson when asked about this week's inevitable layoffs.

The layoffs are expected to continue, however. Sources inside Uber said CEO Dara Khosrowshahi might still be considering more layoffs. These sources aren't convinced the mass layoffs are over since the reported acquisition of Grubhub will inevitably result in huge job losses.

Grubhub is an online and mobile prepared food ordering and delivery marketplace. Uber announced a potential takeover of Grubhub on May 12. Grubhub has 19.9 million active users and 115,000 associated restaurants in the U.S.

Uber has softened the impact of the ridesharing slump in the pandemic with growth in its food delivery service Uber Eats
Uber has softened the impact of the ridesharing slump in the pandemic with growth in its food delivery service Uber Eats AFP / Philippe LOPEZ