Uber Technologies Inc. (NYSE: UBER) announced Wednesday that it plans to take more actions to cut costs in regards to the COVID-19 pandemic. This includes layoffs and executive pay cuts.
In a filing with the U.S. Securities and Exchange Commission, the company noted that it plans to reduce its operating expenses in response to the economic challenges and uncertainty resulting from the ongoing pandemic and its impact on the business.
The company detailed:
Due to lower trip volumes in its Rides segment and the Company’s current hiring freeze, the Company is reducing its customer support and recruiting teams by approximately 3,700 full-time employee roles. In connection with these actions, the Company estimates that it will incur approximately $20 million related to severance and other termination benefits. The Company is evaluating other cost and will provide an update in subsequent SEC disclosures regarding such amounts, if material.
Separately, CEO Dara Khosrowshahi has agreed to waive his base salary for the remainder of the year.
Uber is expected to report its first-quarter financial results after the markets close on Thursday. The consensus estimates are calling for a net loss of $0.83 per share on $3.51 billion in revenue. The same period of last year reportedly had a net loss of $2.23 per share and $3.04 billion in revenue. Also, look for rival ride-hailing service Lyft, Inc. (NASDAQ: LYFT) to report after the markets close Wednesday.
Uber stock traded down about 4% to $27.00 on Wednesday, in a 52-week range of $13.71 to $47.08. The consensus price target is $38.02.