Vehicle for Hire: Careem Cuts Workforce | Financial Buzz

Vehicle for Hire: Careem Cuts Workforce

Careem, subsidiary of Uber Technologies, Inc. (NYSE: UBER) announced the cut of 536 jobs this week or 31% of the company’s workforce.  This announcement was hours after Uber announced that its Eats delivery business was laying off staff. 

Careem operated ride-hailing and delivery businesses primarily in the Middle East announced that it is focusing on the security of the company and that parent company Uber is committed to and believes in its business model.  “As we have discussed several times in the last few weeks, the crisis brought on by COVID-19 has put our dream and future impact at significant risk,” Chief Executive Mudassir Sheikha said in a blog on Careem’s website. “In this new reality, the surest way to secure Careem for the long term is to drive towards self-sustainability within a reasonable time frame,” he said.

Careem did not disclose how much it expects to save from the layoffs or which parts of its business the staff has been cut from but reported that tech-colleagues are protected so that it may invest in its products.  Employees will receive a minimum of three months severance pay, a month of equity vesting and potentially extended visa and medical insurance.  This includes family members until the end of the year.