Representative image: Pexels
Riding-hailing firm Uber laid off 600 employees in India across teams on May 26, a few days after domestic rival Ola trimmed its workforce.
"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. Around 600 full-time positions across driver and rider support, as well as other functions, are being impacted," said Pradeep Parameswaran, President, Uber India and South Asia.
Parameswaran said the move was part of global job cuts announced earlier in May.
"Each will receive a minimum 10 weeks payout, medical insurance coverage for the next six months, outplacement support, be allowed to retain their laptops and given the option to join the Uber talent directory," he said of the staff asked to go.
Last week, Ola slashed 1,400 jobs, or 25% of its workforce, as its revenue fell 95 percent in two months.
The layoffs came within days of the two cab aggregators resuming operations in the country, as the government relaxed some of the lockdown restrictions.
A driver is allowed only two passengers in a cab and has to follow the guidelines issued by local authorities on the areas they can service.
The coronavirus outbreak has hit Uber hard. Cabs were off the road for at least six weeks as India hunkered down to break the chain of infections and with people preferring personal vehicles to minimise risk of contracting the virus, business is yet to pick up.
Globally, the company has committed $50 million
to provide safety supplies such as sanitisers, masks and shower caps to its drivers. It has also made masks mandatory for riders and drivers.