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.