Uber considering laying off 5,400 workers

 Uber's CTO, Thuan Pham, will resign from his position as the ride-hailing company considers layoffs in the thousands due to social distancing measures to combat the COVID-19 coronavirus pandemic

According to an SEC filing on Tuesday, Pham will be stepping down May 16 from his CTO position, a role he's held since 2013.

Along with losing its CTO, the ride-hailing company is also reportedly considering laying off up to 20% of its workforce, or around 5,400 employees, according to The Information.

“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,” an Uber spokesperson told Forbes.
Around the time President Trump declared a national emergency, Uber shared that its business had fallen by as much as 70% in major cities.

On April 16, the company withdrew its 2020 guidance for gross bookings, adjusted net revenue and adjusted EBITDA, saying "it is impossible to predict with precision the pandemic’s cumulative impact on our future financial results."

Uber stock plummeted to $14.82 on March 18, down 52% from the start of the year, but has since recovered, closing at $30.12 on Tuesday.

WHAT TO WATCH FOR

Uber will be announcing its first-quarter earnings on May 7. Before the pandemic, the company was hoping to swing to profitability in its fourth quarter. In a similarly precarious position, Lyft will share first-quarter earnings a day earlier on May 6.

KEY BACKGROUND

Last year, Uber laid off almost 1,000 employees in three separate rounds, hitting its engineering, marketing and Uber Eats teams. Gig workers like rideshare drivers are eligible to receive unemployment benefits from the $2 trillion CARES Act signed into law last month, though, confusion has arisen in California, where drivers are considered employees and may not be able to apply for benefits.

Credit:- forbes.com