Hundreds Of Uber Employees In India Will Lose Job In The Next 2 Weeks

Uber is the leading car-hailing platform in India, creating jobs for thousands of people throughout the country. However, the nationwide lockdown hit them hard, causing a sharp decline in their business, which forces them to let go of 25% – 30% workforce to survive during this tough time.

500 – 700 Uber employees in India to lose jobs

In the latest report, Uber CEO Dara Khosrowshahi implied to his staff that massive layoffs would take place in the next two weeks to save the business.

After their discussion, they have decided to end contracts with 20% of employees on the global scale. This is totally understandable considering the lockdown situations in many countries in the world.

Uber Indis is now having over 2,000 employees across the nation. According to a reliable source,

“The company is set to lay off up to 700 people in India. The decision has been almost final and likely to be announced when lockdown will get lifted. With this, Uber would be laying off about 25-30% of its overall workforce in India.”

If you follow business news closely, you will see that Uber seems to delay its decision when many companies in the same category have announced their layoffs earlier.

A Dubai ride-hailing and delivery company has planned to cut down 30% of their workforce due to the serious impacts of Covid-19 pandemic.

“Since the government had requested companies not to lay off employees amid the Covid-19 crisis, Uber is delaying the announcement of the layoff in India.”

If this person is telling the truth, the layoff will be announced right when all the lockdown is lifted.

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1 in 4 Indian people lost job in the past 2 months

Similar to Uber, a range of businesses were badly affected during the nationwide lockdown. While they are struggling to survive, layoffs are inevitable.

According to a monthly report from CMIE, the unemployment rates increases significantly during the last month to 23.5%. This means nearly a quarter of Indian people are unemployed.

Places with the highest unemployment rate are Tamil Nadu, Jharkhand and Bihar (above 46%) while Punjab, Chhattisgarh and Telangana witness the lowest data (below 7%).

The data is still showing signs of increasing. CEO of CMIE told that:

“The estimated loss of employment between March and April 2020 is 114 million. Given that the total count of employed is around 400 million, the loss of 114 million implies that one in every four employed persons lost their jobs.”

Higher unemployment rates are associated with more serious problems, related to poverty, malnutrition, and infant mortality. It used to take 90 million Indians 4 years to escape extreme poverty but with this complex situation of the pandemic, no one could be sure how long these people could improve their living standards again.

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