Thursday, May 28, 2020

Uber plans off another 3,000 workers, just reported CEO was paid a total of $42.4 million in cash and stock in 2019

Uber is laying off another 3,000 employees and is also closing 45 offices worldwide.

What’s happening: Rides have been hit hard amid the Wuhan virus. More specifically, rides are down about 80%, according to the company.

Even though rides are down, Uber Eats delivery business is ‘poppin’: In Q1, Uber Eats experienced major growth with gross bookings of $4.68 billion, up 52% from that same quarter one year ago.

These layoffs come just weeks after Uber laid off 3,700 employees in order to save about $1 billion in costs. Since the pandemic hit, Uber has laid off about 25% of its workforce.

As part of the layoffs, Uber is expected to pay up to $145 million to employees via severance and other benefits, and up to $80 million in order to shut down offices.

Uber said it will save over $1 Billion in costs with the layoffs and office downsizing.

CEO Dara Khosrowshahi wrote in an email to employees today: “I knew that I had to make a hard decision, not because we are a public company, or to protect or stock price, or to please our Board or investors.”

5 days ago, it was just revealed Uber CEO Dara Khosrowshahi was paid a total of $42.4 million in cash and stock in 2019.

In a move to show his commitment to the company-wide cost reduction, Khosrowshahi said he would waive his salary for the rest of 2020.

But…His salary comprises only a tiny portion of Khosrowshahi’s total compensation. Uber pays Khosrowshahi an annual base salary of $1 million, which is fairly within the range of what CEOs of comparable tech companies are paid. But last year, he received a total pay package worth $42.4 million, comprising of that $1 million in base salary, $2 million in bonus, $37.4 million in equity award, and $2 million in reimbursement for work-related expenses.

Don’t forget about the Uber’s other executives: In 2019, Uber paid its seven top executives a total of $11.4 million in salary and cash bonus, plus $71 million worth of equity awards, according to regulatory filings.

Munch More

House Speaker Nancy Pelosi unveiled a more than $3 trillion coronavirus aid package Tuesday, providing nearly $1 trillion in aid for states, cities, and local governments, aid to essential workers, and a new round of cash payments to individuals.

The proposal details are:

  1. Fresh round of $1,200 direct cash aid to individuals, increased to up to $6,000 per household.
  2. $175 billion housing assistance fund to help pay rents and mortgages.
  3. $75 billion more for virus testing.
  4. It would continue, through January, the $600-per-week boost to unemployment benefits.
  5. It adds a 15% increase for food stamps and new help for paying employer-backed health coverage.
  6. $3.6 billion to help local officials prepare for the challenges of holding elections during the pandemic.
  7. $10 billion more for the PPP
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A restaurant that opened for full service on Mother’s Day in defiance of state rules banning in-person dining was ordered closed by state health officials on Monday. Despite an order to close, Monday was another busy day for C&C Breakfast and Korean Kitchen in Castle Rock as they stayed open.

What happened: A video posted by Colorado Community Media showed people sitting at tables and waiting close together in a line at the counter while others lined up outside for a chance to get inside the eatery in Castle Rock about 30 miles south of Denver.

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“F— Elon Musk,” was Democrat Assemblywoman’s Lorena Gonzalez’s response on Twitter at the news that entrepreneur Elon Musk planned to pull much of his company Tesla out of California.

What happened: Earlier Saturday, Musk wrote on Twitter that he planned to move Tesla’s headquarters and “future programs” to Texas and Nevada – adding that the company’s current facility in Fremont, Calif., in the San Francisco Bay area would remain open for some activity “dependent on how Tesla is treated in the future.”

Musk noted for his nearly 34 million Twitter followers that Tesla was “the last carmaker left in CA.” He referred to Tesla’s dispute with Alameda County, where Fremont is located, as “the final straw.”

 

 

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U.S. employers cut an unprecedented 20.5 million workers in April, propelling the jobless rate to its highest since the Great Depression as the coronavirus-forced lockdown reversed a decade of labor-market gains in a single month.

What we know: U.S. employers cut 20.5 million jobs in April, a record-shattering number that pushed unemployment to 14.7 percent, the highest level since the Great Depression, evidence of the unprecedented economic catastrophe triggered by the coronavirus pandemic.

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This week: 3.2 million Americans filed for unemployment last week, the US Department of Labor said on Thursday

In the last 7 weeks: Now 34 million Americans have filed for unemployment benefits.

 

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